The Nigerian government, in partnership with the Food and Agriculture Organization (FAO) under the Hand-in-Hand Initiative, has launched a $3.14 billion agricultural investment portfolio focusing on five key value chains: tomato, cassava, maize, dairy, and fisheries.
The goal of this initiative is to alleviate poverty, eliminate hunger, strengthen rural communities’ resilience, achieve food sovereignty, and align with global initiatives like the Sustainable Development Goals (SDGs) and the African Union’s Comprehensive Africa Agriculture Development Programme (CAADP) Action Plan.
This announcement was made by the Minister of Agriculture and Food Security, Sen. Abubakar Kyari, at the National and Sub-Regional Hand-in-Hand Investment Forum held in Abuja, Nigeria, aimed at boosting agricultural investment in West Africa and the Sahel.
Sen. Kyari explained that the investment pipeline comprising $1.75 billion in government funding and $1.39 billion in private sector commitments, with an expected internal rate of return of 14% aims to lift millions out of poverty, create jobs, and improve food and nutrition security.
He also highlighted that the portfolio would yield environmental benefits, with a potential rise in per capita incomes of up to $657 and the sequestration of over 1.2 million tonnes of carbon, contributing to global climate goals.
With 70 million hectares of agricultural land, of which only 20% is currently cultivated, and an irrigation potential of over 3 million hectares, Nigeria stands out as one of Africa’s most promising agricultural investment destinations.
The Minister emphasized investments in Special Agro-Industrial Processing Zones, expanding cold chain logistics, revitalizing the Bank of Agriculture, and encouraging local production of inputs and equipment. He also pointed out that investors would benefit from tax incentives, exemptions on agricultural machinery imports, pioneer status tax holidays, and credits for sourcing raw materials locally, creating a highly favorable environment for agribusiness investments in Africa.
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Dr. Hussein Gadain, the FAO Country Representative for Nigeria and ECOWAS, commended Nigeria’s commitment to the Hand-in-Hand Initiative, calling it a key vehicle for achieving the SDGs and Africa’s long-term goals as laid out in the Kampala Declaration. He also praised Nigeria’s leadership, particularly Vice President Shettima’s efforts to mobilize investment and innovation, as well as the Ministry of Agriculture’s role in developing investment-ready projects across vital agricultural sectors.
Dr. Gadain highlighted the success in aligning private sector stakeholders and international partners with Nigeria’s agricultural priorities, noting that these commitments were already translating into tangible investments driving substantial growth.
He particularly emphasized Nigeria’s role in the Hand-in-Hand for the Sahel initiative, which focuses on water and irrigation, as a transformative move that unlocks agricultural and fisheries potential while enhancing climate resilience.
The EU Head of Delegation in Nigeria, Mr. Gautier Mignot, also delivered a message of support, highlighting the EU’s long-standing partnership with Nigeria in strengthening food security and investment in the agricultural value chain. He revealed that the EU had recently invested over 80 million euros to unlock opportunities across key value chains in seven Nigerian states. He reiterated the EU’s commitment to deeper collaboration with Nigeria, particularly in ensuring that irrigation plays a crucial role in the country’s economic growth and agricultural transformation.
