FG, Defence Firms Sign MoU to Secure Farms, Attract Agric Investors

News in Brief:

— The Federal Government and military-linked firms have signed a 10-year deal to secure farm investments and revive abandoned farmland.

— DAPCO will provide operational support, site protection and security, while Integrainium coordinates investment and commercial activities.

The Federal Government is developing a military-backed security plan to protect large farm investments and bring back farmlands abandoned because of insecurity. It plans to attract local and foreign money into large-scale food production.

The parties signed a Memorandum of Understanding (MoU) in Abuja. Representatives of the Ministry of Finance Incorporated (MOFI), its agricultural investment vehicle, Integrainium Holdings Limited, and the Defence Agricultural Assets and Projects Development Company Limited (DAPCO) were all present.

Nigeria's Defence Holdings Company Limited (DHCL) supports the arrangement.

Insecurity Keeps Investors Away

Speaking with journalists at the signing, MOFI’s Executive Director, Investments, Dr Femi Ogunseinde, said insecurity had discouraged agricultural investment and forced farmers to abandon productive land.

“We’ll be leveraging the capabilities of the Defence Holdings Companies Limited and DAPCO to ensure that the security architecture, no matter what part of Nigeria farming takes place, gives the investors the confidence that their funds are safe,” he said. “We are seeing a lot of our farmlands abandoned, so much so that, like the previous speakers before me had mentioned, we’ve not been able to produce locally everything we need.”

Soybean, Sugarcane Projects Lead the List

Ogunseinde stated that the government had identified potential investments, including large-scale soybean production in Yobe State and sugarcane cultivation in Jigawa State. He described both as multibillion-dollar opportunities but did not disclose confirmed investment commitments. The partners expect to start at least one project before the end of 2026.

According to the PUNCH, a statement about the agreement listed six initial opportunities, including nano-fertiliser distribution, rehabilitation of BARC Farms in Jos, an agro-processing and supply-chain security project at Giri, and restoration of greenhouses at four locations in Plateau State. The others are a 1,000-hectare integrated crop, livestock and aquaculture project in Namtari, Adamawa State, and an agricultural risk management system that will use remote sensing, artificial intelligence and data analytics to monitor farm operations and security threats.

Who Does What

DAPCO will provide operational support, site protection and security, while Integrainium coordinates investment and commercial activities. MOFI will raise domestic and international capital. The agreement sets up an initial 10-year framework and a joint steering committee.

DAPCO’s Chairman and Chief Executive Officer, Aliyu Abdulhameed, said serving military personnel, veterans and surrounding communities would take part in the farming activities to create jobs. He added that each project would undergo due diligence, investment appraisal and value-for-money checks.

“The role of the Defence Holdings Company and, by extension, the defence establishment, is to ensure that finance meets agricultural opportunity in a secure manner,” he said.

Broader targets of the arrangement

MOFI’s Managing Director, Dr Armstrong Takang, said the deal should raise production and ease inflation.

“We believe that this will lead to a significant increase in the output of food that is being produced. And our view is that it’s not only for food sovereignty, but it will also lead to addressing our food inflation issues that we have,” Takang said.

He added that higher output would create more demand for locally made fertiliser and support food processing and export industries.

Defence Holdings’ Group Managing Director, Air Vice Marshal Anthony Ndace, said the MoU also covers hospitality and other sectors.

“The MOU covers partnership on agriculture, the hospitality industry, and so many other aspects. This is just the broader MOU that has been signed; the detailed MOU for each of the investment aspects will be unveiled later on,” he said.

Ndace declined to disclose the proposed investment value. All projects remain subject to feasibility studies, security assessments, environmental and social reviews, regulatory approvals and separate agreements.