KEY POINTS

• The Federal Government is partnering with Ministry of Finance Incorporated (MOFI), Integranium Holdings and defence-linked investment institutions to attract large-scale agricultural funding.
• Potential investments of $1 billion to $2 billion have been identified, but the funds have not been committed.
• Proposed projects include soybean farming in Yobe and sugarcane production in Jigawa.
• The partnership aims to address insecurity that has discouraged investors and contributed to abandoned farmland.
• The partners expect at least one project to commence before the end of 2026, subject to assessments and project agreements.

MAIN STORY

The Federal Government is seeking to attract billions of dollars into commercial agriculture through a partnership involving public investment institutions and defence-linked companies, as it seeks to improve food security, restore investor confidence and expand domestic food production.

The Managing Director of the Ministry of Finance Incorporated (MOFI), Dr Armstrong Takang, disclosed this during a panel discussion at the 32nd Nigerian Economic Summit (NES32) in Abuja on Tuesday.

Takang said MOFI, Integranium Holdings and the Defence Agricultural Assets and Projects Development Company (DAPCO) were collaborating on the initiative, with support from Defence Holding Company Limited. The arrangement is intended to combine investment mobilisation with security and project management to make large-scale agricultural projects more attractive to investors.

He said increased agricultural production could help moderate food inflation by expanding domestic supplies while creating opportunities to supply industries and export markets.

Takang also said the initiative would seek to extend investment benefits to communities hosting the projects. He identified PFI NPK, the Fertilizer Aggregation Company, as one of the businesses that could benefit from increased demand for agricultural inputs as farming activities expand.

The Executive Director of Investments at MOFI, Dr Femi Ogunseinde, said insecurity had made investors reluctant to commit funds to large-scale farming because of the risks to their investments and operations.

He cited proposed soybean and sugarcane projects in the North-East and North-West as examples of the opportunities being pursued.

“We have a soybean initiative in Yobe, we have a sugarcane initiative in Jigawa—all large-scale, all multibillion-dollar projects,” Ogunseinde said.

He said the partnership would provide a platform for engaging Nigerian and international investors interested in commercial agriculture, with the aim of attracting private capital rather than depending solely on government funding.

Ogunseinde disclosed that the partners had identified potential investments worth between $1 billion and $2 billion. However, he clarified that the amounts were not funds already committed and that the total investment value of the broader agreement had not been disclosed.

According to him, the partners expect at least one project to commence before the end of 2026. Individual projects would first undergo assessments covering financial viability, investment potential, due diligence and value for money.

He said the planned agreements would also address risk management, security arrangements and project management, with DAPCO working alongside MOFI and its investment partners.

Ogunseinde estimated that Nigeria had between 30 million and 35 million hectares of land potentially available for farming. He said the partnership was intended to attract investors capable of combining land, capital, agricultural expertise and security arrangements to expand commercial production.

He added that insecurity had contributed to abandoned farmland, limiting the country’s ability to produce enough food for domestic consumption.

The Chairman and Chief Executive Officer of DAPCO, Aliyu Abdulhameed, said the initiative would channel financing into rural agricultural opportunities through properly structured arrangements that address security concerns.

He said agricultural projects often operate far from major urban centres, making the protection of farms and investments an important consideration. He added that serving military personnel and veterans, particularly those from the armed forces, would be among the groups considered for participation.

Abdulhameed also said the partners planned to deploy technology, innovation and improved farming skills to increase productivity and make better use of available land.

The Group Managing Director of Defence Holding Company Limited, Air Vice Marshal A.V. Ndache, said the memorandum of understanding covered agriculture, hospitality and other investment areas. He explained that more detailed agreements would be developed for individual projects as the partnership progressed.

Ndache said the initiative was intended to improve national productivity, with food security remaining a priority for President Bola Tinubu’s administration.

THE ISSUES

The proposed partnership seeks to address a major obstacle to commercial farming: the risk that insecurity can make it difficult to cultivate land, protect workers and recover investments.

For investors considering large farms, the availability of land alone may not be enough. They also need confidence that farming operations can continue, crops can be harvested and products can reach buyers. The proposed security arrangements are intended to address some of these concerns, although the partners have not disclosed the specific measures that will be deployed in each project.

The scale of the proposed funding is also important. The $1 billion to $2 billion figure represents potential investment opportunities, not money already secured. The distinction matters because announced investment intentions do not automatically translate into financing, cultivated land or additional food supplies.

If the projects proceed, their impact could extend beyond farms. Increased production of soybeans and sugarcane could create demand for agricultural inputs, processing, transport and distribution services. Fertiliser suppliers could also benefit from increased farming activity.

However, these benefits will depend on whether projects secure funding, pass their assessments and reach implementation. The partners have not disclosed the number of hectares to be cultivated, expected output, job creation targets or the total funding required.

The initiative also raises questions about how participating communities will benefit. Takang said the partners intended to extend investment benefits to host communities, while Abdulhameed identified military personnel and veterans as potential participants. Specific arrangements for employment, participation and local economic benefits have not yet been provided.

WHAT’S BEING SAID

• Dr Femi Ogunseinde, Executive Director of Investments at MOFI: “We have a soybean initiative in Yobe, we have a sugarcane initiative in Jigawa—all large-scale, all multibillion-dollar projects,”
• Dr Armstrong Takang, Managing Director of MOFI: He said the initiative was intended to provide security for large-scale agricultural investments, restore investor confidence and increase local food production.
• Aliyu Abdulhameed, Chairman and Chief Executive Officer of DAPCO: He said the initiative would channel financing into rural agricultural opportunities under secure and properly structured arrangements.
• Air Vice Marshal A.V. Ndache, Group Managing Director of Defence Holding Company Limited: He said the memorandum of understanding covered agriculture, hospitality and other investment areas, with detailed agreements to follow for individual projects.

WHAT’S NEXT

The partners expect at least one agricultural project to commence before the end of 2026. Before implementation, individual projects are expected to undergo financial viability assessments, due diligence and value-for-money reviews.

Further details are expected as project-specific agreements are developed. These will be important for establishing how much funding is secured, how much land will be cultivated, what security arrangements will apply and how production will be measured.

The partners have not yet announced specific food production targets, job creation estimates or the total funding requirement for the broader initiative.

BOTTOM LINE

The Federal Government is seeking to use security arrangements and investment partnerships to attract large-scale funding into agriculture. The plan could support food production and rural economic activity, but its success will depend on whether potential investments become funded projects that cultivate land, produce food and deliver measurable benefits to Nigerian communities.

Source: News Agency of Nigeria (NAN)