The Federal Government has announced a landmark plan to attract a $3.14 billion agricultural investment for food security under the Food and Agriculture Organization (FAO) Hand-in-Hand Initiative.
The ambitious agricultural investment project is designed to tackle poverty, end hunger, and strengthen Nigeria’s food sovereignty through targeted investments in critical value chains.
$3.14 Billion Agricultural Investment for Food Security Launched
Speaking at the National and Sub-Regional Hand-in-Hand Investment Forum in Abuja, Minister of Agriculture and Food Security, Senator Abubakar Kyari, said the new framework would mobilize resources from both government and private sector stakeholders.
According to him, the agricultural investment pipeline includes $1.75 billion in government funding and $1.39 billion in private sector commitments, with an anticipated average internal rate of return of 14 percent.
The minister emphasized that the initiative aligns with Nigeria’s urgent need to boost productivity, reduce reliance on imports, and safeguard national food security.
“This programme has the potential to lift millions of Nigerians out of poverty, create sustainable jobs, and significantly improve food and nutrition security,” Kyari stated.
The $3.14 billion agricultural investment for food security will target five priority value chains:
Tomato – enhancing production and processing to cut import dependence.
Cassava – scaling value-added derivatives like starch and ethanol.
Maize – strengthening feed and food supply chains.
Dairy – reducing reliance on imported milk products.
Fisheries – promoting aquaculture to meet growing protein demand.
Kyari explained that these commodities were strategically selected for their high economic impact, employment potential, and nutritional relevance.
The initiative is expected to deliver transformative outcomes.
Per capita incomes are projected to rise by as much as $657, while Nigeria contributes to global climate goals by sequestering over 1.2 million tonnes of carbon.
“The message is clear—Nigeria has the resources, the capacity, and now the capital to become a leading agricultural powerhouse in Africa,” the minister said.
He added that the $3.14 billion agricultural investment for food security would also ensure that rural communities benefit directly from the new opportunities created, thereby strengthening resilience and inclusivity in agricultural growth.
The government has already embarked on several interventions that will complement the new investment drive. These include:
Expansion of Special Agro-Industrial Processing Zones across states.
Development of cold chain logistics to reduce post-harvest losses.
Recapitalisation of the Bank of Agriculture to provide affordable financing.
Promotion of local manufacturing of inputs and farming equipment.
These measures, Kyari noted, are designed to create an enabling environment for agribusiness investors while boosting efficiency across the agricultural value chain.
To further encourage participation, the Federal Government is offering a wide range of incentives for investors in the agricultural sector. These include:
Tax incentives for agribusiness firms.
Duty waivers on imported machinery.
Pioneer status tax holidays for new projects.
Credits for companies sourcing raw materials locally.
“Together, these incentives create one of the most comprehensive enabling environments for agribusiness investment in Africa,” Kyari said, assuring stakeholders of transparency and accountability in implementation.
The $3.14 billion agricultural investment for food security positions Nigeria as one of the most attractive destinations for agricultural financing on the continent.
The government believes that the initiative will unlock billions more in future investments by proving that structured capital deployment in agriculture can yield strong returns.
Kyari stressed that Nigeria’s vast arable land, youthful population, and growing domestic market make it uniquely placed to lead Africa’s agricultural transformation.
“This is not just about producing more food; it is about securing the future of our people, reducing dependency, and building a system that can withstand global shocks,” he said.
The minister reiterated that success would depend on collaboration between government, private investors, and development partners.
He highlighted the importance of continuous engagement with host communities to ensure inclusivity and shared benefits, as well as alignment with environmental and social best practices.
Development Finance Institutions (DFIs), financial institutions, and capital market operators are also expected to play significant roles in mobilising resources and ensuring sustainability of the initiative.
Ultimately, the $3.14 billion agricultural investment for food security aims to shift Nigeria from food dependency to food sovereignty.
By strengthening domestic production, creating jobs, and stabilising food prices, the initiative is expected to contribute directly to national security and economic resilience.
As Kyari noted, “This sector is not just about agriculture. It is about building an inclusive, resilient, and globally competitive economy that puts Nigeria on the path to sustainable prosperity.”
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