NSIA, UK Firm Seal $500m Deal to Launch Mega Dairy Hub in Nigeria

‎Nigeria’s sovereign wealth fund, the Nigeria Sovereign Investment Authority (NSIA), has entered into a landmark $500 million partnership with UK-based agribusiness investor Asset Green Limited to develop a large-scale dairy farming and processing hub in Nigeria.

‎The agreement was signed in London on Tuesday, ahead of President Bola Tinubu’s official visit to the United Kingdom, according to a statement from the British High Commission in Nigeria.

‎Under the deal, Asset Green, through its agribusiness arm, Agrium Capital Ltd, will collaborate with the NSIA to establish an integrated dairy platform described by insiders as one of Nigeria’s most ambitious dairy investments to date.

‎The project will span 20,000 hectares of environmentally sustainable pasture and support a 10,000-head milking herd. Plans also include the construction of a state-of-the-art processing facility to produce fresh milk, powdered milk, butter, cream, and up to 15,000 metric tonnes of infant formula annually.

‎Designed to significantly cut Nigeria’s dependence on imported milk powder, the venture aims to modernise dairy farming practices, enhance national nutrition standards, and integrate up to 10,000 rural households into its supply chain through inclusive out-grower schemes.

‎Once fully operational, the dairy hub is projected to generate more than $620 million annually, while creating 2,500 direct and 5,000 indirect jobs across the country.

‎British Deputy High Commissioner to Nigeria, Jonny Baxter, described the initiative as a “full-circle moment” in UK-Nigeria economic relations. He noted that the UK played a foundational role in establishing the NSIA over a decade ago by providing legal and financial advisory support that strengthened its governance framework.

‎“That early investment has paid dividends, helping to build a resilient institution capable of driving long-term development,” Baxter said.

‎NSIA Managing Director and Chief Executive Officer, Aminu Umar-Sadiq, characterised the venture as a transformative step for Nigeria’s dairy industry.

‎“By combining climate-smart agriculture, advanced processing technology and inclusive out-grower participation, we are building a modern, competitive dairy sector,” he said. “This will reduce import dependence, create jobs and deliver sustainable long-term value for Nigerians.”

‎Rod Bassett, Director at Asset Green and Chief Executive of Agrium Capital Ltd, said the greenfield project would unlock Nigeria’s agricultural potential by strengthening local production capacity, building critical infrastructure and enhancing food security.

‎He added that the investment aligns with environmental sustainability goals while advancing food sovereignty and nutritional resilience nationwide.