FG targets $3.14bn agricultural investment to enhance food security

By Kunle Sanni –

The Federal Government has unveiled plans to attract $3.14 billion in agricultural investments through the Food and Agriculture Organization’s (FAO) Hand-in-Hand Initiative, focusing on five key value chains: tomato, cassava, maize, dairy, and fisheries.

The Minister of Agriculture and Food Security, Senator Abubakar Kyari, disclosed this during the National and Sub-Regional Hand-in-Hand Investment Forum held in Abuja. He said the initiative is designed to eradicate poverty, enhance food security, and build resilience in rural communities, while also aligning with global goals such as the Sustainable Development Goals (SDGs) and the African Union’s Comprehensive Africa Agriculture Development Programme (CAADP).

According to the Minister, the investment pipeline includes $1.75 billion in government funding and $1.39 billion in private sector commitments, with an expected internal rate of return of 14 percent. He added that the portfolio is projected to lift millions of Nigerians out of poverty, create jobs, and contribute to climate action by sequestering over 1.2 million tonnes of carbon.

“With 70 million hectares of agricultural land, of which only 20 percent is cultivated, and irrigation potential of over three million hectares, Nigeria represents one of the most compelling agricultural investment destinations in Africa,” Kyari said.

The government, he noted, is investing in Special Agro-Industrial Processing Zones, cold chain logistics, recapitalization of the Bank of Agriculture, and the local manufacturing of inputs and equipment. Investors, he added, will benefit from tax incentives, exemptions on machinery imports, and pioneer status tax holidays.

FAO Country Representative in Nigeria and ECOWAS, Dr. Hussein Gadain, praised Nigeria’s leadership in driving the initiative, highlighting Vice President Kashim Shettima’s role in mobilizing investment and innovation. He described the collaboration as a “game-changer” for boosting water and irrigation systems across the Sahel region.

The European Union (EU) also reaffirmed its support for Nigeria’s agricultural transformation. The EU’s Head of Delegation in Nigeria, Mr. Gautier Mignot, disclosed that the bloc had recently invested over €80 million in value chain development across seven states. He pledged deeper collaboration with Nigeria, particularly in irrigation and agribusiness development.

The forum was attended by government officials, development partners, members of the diplomatic community, and representatives from the private sector.