Nigeria Secures $496m Dairy Deal with UK Firm to Boost Food Security, Create 7,500 Jobs

Nigeria has taken a major step toward transforming its agricultural sector as the Nigeria Sovereign Investment Authority signed a $496 million Memorandum of Understanding (MoU) with Asset Green Ltd to develop a large-scale integrated dairy production and processing platform.

The agreement, signed in London on the sidelines of President Bola Ahmed Tinubu’s state visit to the United Kingdom, is being described as one of the most ambitious dairy investments in Nigeria’s history.

The project aims to significantly reduce Nigeria’s dependence on imported milk products by establishing a modern dairy system that combines 20,000 hectares of climate-smart crop and forage production with a 10,000-milking cow facility. It will also include a state-of-the-art processing plant capable of producing fresh milk, butter, cream, milk powder, and up to 15,000 metric tonnes of infant formula annually.

Once operational, the initiative is projected to generate over $620 million annually and create about 2,500 direct and 5,000 indirect jobs across the country.

Beyond production, the project is expected to integrate up to 10,000 rural households into its value chain through out-grower schemes, thereby improving livelihoods and strengthening food security nationwide.

Managing Director and CEO of NSIA, Aminu Umar-Sadiq, said the partnership represents a major milestone in building a modern and competitive dairy sector in Nigeria.

“By combining climate-smart farming, advanced processing capacity, and inclusive out-grower participation, we are laying the foundation for a sector that reduces import dependence and delivers long-term value,” he said.

On his part, Director at Asset Green Ltd and CEO of Agrium Capital Ltd, Rod Bassett, described the investment as a transformative opportunity to unlock Nigeria’s agricultural potential.

He noted that the project would deliver critical infrastructure across the dairy value chain, enhance local production, and reduce reliance on imports while improving nutritional outcomes.

Also speaking, British Deputy High Commissioner Jonny Baxter said the deal reflects the long-standing economic cooperation between Nigeria and the United Kingdom.

The agreement forms part of broader engagements during Tinubu’s visit, which include bilateral talks with Keir Starmer aimed at strengthening trade, investment, and strategic partnerships between both countries.

The dairy initiative is expected to play a key role in advancing Nigeria’s food sovereignty while positioning the country as a major player in sustainable agriculture.