NSIA, UK Firm Seal $496m Dairy Deal, Targets Imports Reduction, Jobs Creation

News in Brief

-NSIA and Asset Green Limited sign a $496 million deal to build an integrated dairy production and processing platform in Nigeria. 

-The project features a 10,000-cow dairy farm, 20,000 hectares of climate-smart forage, and a high-tech plant producing fresh milk, butter, cream, milk powders, and infant formula annually.

The Nigeria Sovereign Investment Authority (NSIA) has forged a strategic partnership with UK-based Asset Green Limited to transform Nigeria’s dairy production sector through a newly signed Memorandum of Understanding (MoU) valued at $496 million. 

Signed in London ahead of President Bola Tinubu’s state visit, the agreement outlines plans for the establishment of an integrated dairy livestock production and processing platform in the country, including a framework for collaboration and the project‑development cost commitments leading up to the formal shareholders’ agreement.

The project aims to transform Nigeria’s dairy sector by reducing dependence on imported milk products, a persistent challenge amid rising food inflation and nutrition gaps. 

Project Scope and Economic Impact

The agri-industrial project features 20,000 hectares of regenerative crop and forage cultivation, a cutting-edge 10,000-milking-cow dairy farm and a state-of-the-art milk processing facility. The facility will churn out fresh milk, butter, cream, milk powders, and a substantial 15,000 metric tons of infant formula each year, directly addressing Nigeria's nutritional needs for vulnerable populations.

As part of its plans, the project aims to integrate 10,000 rural households through out-grower schemes, modernise farming practices, and generate $620 million in annual revenue alongside 2,500 direct jobs and 5,000 indirect ones once it is fully operational. 

Leadership Voices Endorse Transformative Vision

According to statements from the UK High Commission in Abuja and NSIA, the initiative aligns with national goals for food sovereignty, leveraging climate-smart technologies to modernise farming and enhance local production capacities.

British Deputy High Commissioner Jonny Baxter, underscoring the partnership's historical roots, recalled the UK’s pivotal support a decade ago in birthing NSIA with legal and financial expertise.

“Over a decade ago, the UK provided pivotal support to Nigeria in establishing the NSIA, offering legal and financial expertise that helped lay the foundation for its successful launch and strengthen its governance and credibility,” Baxter said.

“The NSIA and Asset Green partnership is a powerful example of how that groundwork continues to deliver impact – a full-circle moment that reflects the long-term economic cooperation between the UK and Nigeria and the shared commitment to deepening sustainable, private-sector-driven growth,” he added.

NSIA Managing Director Aminu Umar-Sadiq categorised the deal as a generational shift for the country’s food systems.

“With a project size of almost $500 million, this is one of the most ambitious initiatives aimed at strengthening Nigeria’s food and nutrition security in a generation,” Umar-Sadiq said.

He also noted that the combination of advanced processing and inclusive farming creates a foundation for a modern, competitive dairy sector that reduces import dependence.

Rod Bassett, director of Asset Green Limited and chief executive officer of Agrium Capital Limited, pointed to the project as a necessary innovation for the Nigerian market.

“This $500 million greenfield investment in Nigeria’s dairy industry allows for the development of advanced and necessary infrastructure spanning the full production and supply system to enhance local production,” Bassett said.

He further explained that the goal is to deliver environmental services and strengthen national food sovereignty and nutritional resilience,” while curbing the massive volume of dairy imports currently entering the country.