The federal government has announced a $3.14 billion agricultural investment package targeting major staple foods consumed in the country under the Food and Agriculture Organisation’s (FAO) Hand-in-Hand Initiative.
The Minister of Agriculture and Food Security, Abubakar Kyari, disclosed this in a statement posted on his X page on Wednesday.
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“Yesterday in Abuja, I presented Nigeria’s $3.14bn Agricultural Investment Portfolio at the Hand-in-Hand Investment Forum, graciously declared open by His Excellency, Vice President Kashim Shettima, GCON,” the Minister said.
He explained that the programmes are designed to enhance food productivity, reduce post-harvest losses, and strengthen food security while offering investors significant financial returns.
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Mr Kyari said the portfolio focuses on tomato, cassava, maize, dairy and fisheries, backed by $1.75 billion public and $1.39 billion private investments.
This, he said, will benefit over 4.1 million Nigerians, raise incomes by up to $657, and deliver strong returns with an average internal rate of return (IRR) of 14.2 per cent.
“With vast farmland, irrigation potential, a market of 230m+, and clear incentives, Nigeria is ready for bankable agribusiness investments that will secure food, jobs and growth,” he said.
The FAO Hand-in-Hand Initiative is a country-led programme to accelerate agricultural transformation and rural development to end poverty (SDG 1) and hunger (SDG 2).
Under this initiative, the FAO deploys the use of data and evidence to identify priority areas with the highest poverty and hunger, and then matches countries with donors, private sector organisations, and financial institutions to mobilise investments for sustainable agri-food systems and inclusive growth.
Also, the initiative employs a robust matchmaking process and features an award-winning geospatial platform and data lab to support these goals.
“Investment breakdown”
On Wednesday, Mr Kyari explained that the tomato programme alone is estimated at $869 million and will cover 72,000 hectares in Kano, Bauchi, and Borno States.
He noted that the aim is to cut post-harvest losses, increase yields up to 30 tonnes per hectare, and benefit 36,000 farmers, and that the investment is projected to generate an IRR of 12.5 per cent and a net present value (NPV) of $171 million.
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For cassava, Nigeria is seeking $382 million to expand productivity across 207,000 hectares in Ogun, Oyo, and Anambra, the statement said.
It said the initiative will directly benefit 45,000 farmers, set up 375 processing units, and reduce the nation’s import dependence on starch and high-quality flour. Additionally, it said the cassava portfolio is expected to deliver an IRR of 15.2 per cent and NPV of $187.7 million.
The statement indicated that the largest share of the investment will be allocated to the maize value chain, with $1 billion planned across one million hectares in Katsina, Kaduna, and Oyo states.
According to the Minister, the maize programme is expected to help close Nigeria’s five million metric tonne production gap, directly impacting 420,000 farmers, and indirectly benefiting nearly three million people.
“The financial outlook for maize shows an IRR of 18.7 per cent and an NPV of $75.6 million,” the statement said.
Officials emphasised that the planned investments would stimulate food security, industrial growth, and regional exports, while also creating resilient livelihoods and sustainable development opportunities for millions of Nigerians.
