Nigeria’s Federal Government is working with military-linked investment institutions to address security concerns that have hindered large-scale agricultural development, including proposed multibillion-dollar soybean and sugarcane projects in Yobe and Jigawa states.

The partnership brings together the Ministry of Finance Incorporated (MOFI), Integranium Holdings and the Defence Agricultural Assets and Projects Development Company (DAPCO), with support from Defence Holding Company Limited. The initiative aims to combine investment mobilisation, security planning and project management to improve investor confidence in agricultural areas affected by insecurity.

Dr Femi Ogunseinde, MOFI’s Executive Director of Investments and the official responsible for the Integranium investment framework, said security concerns had made it difficult to attract domestic and international capital into major agricultural projects.

He identified a soybean initiative in Yobe State and a sugarcane project in Jigawa State as two multibillion-dollar opportunities that have struggled to secure investment because of concerns over protecting agricultural operations and investors’ funds.

Ogunseinde said the new arrangement would allow the partners to approach prospective investors with a framework designed to address these risks. The objective is to mobilise substantial private-sector and international financing rather than rely exclusively on government funding.

Partnership to develop and secure agricultural projects

Under the agreement, DAPCO will work with MOFI and its investment partners on risk management, security planning and project implementation.

DAPCO Chairman and Chief Executive Officer Aliyu Abdulhameed said the partnership was intended to help direct investment into rural agricultural opportunities through structured arrangements that account for security challenges. He noted that many commercial farming opportunities are located far from major urban centres.

The institutions have identified several potential projects and expect to begin work on at least one before the end of 2026. However, the partners have not identified the project or announced a specific commencement date.

Each proposed investment will undergo individual assessments covering financial viability, investment potential, due diligence and value for money before proceeding.

The overall investment value of the agreement has not been disclosed. Although Ogunseinde discussed potential investments of US$1 billion to US$2 billion, these figures were not presented as funding already committed to the programme.

Nigeria seeks to expand commercial farming

The initiative aims to make better use of Nigeria’s agricultural resources to increase food production for domestic consumption, industrial processing and export markets.

Ogunseinde estimated that between 30 million and 35 million hectares of land could be available for farming, presenting opportunities to expand commercial agricultural production and attract international investors.

Defence Holding Company Limited Group Managing Director Air Vice Marshal A.V. Ndache said the institutions had signed a memorandum of understanding covering agriculture, hospitality and other investment areas. More detailed agreements are expected to be developed for individual projects as the partnership advances.

MOFI investment partner Managing Director Dr Armstrong Takang said the agricultural programme would focus on developing bankable agribusiness opportunities capable of attracting both public and private financing. He also said increased local production could help address food inflation by improving the supply of agricultural commodities for households and industry.

The initiative could generate additional demand for fertiliser supplied through MOFI-linked businesses, including PFI NPK, the Fertiliser Aggregation Company. Takang said expanded agricultural activity could create a larger market for fertiliser and support improvements in soil productivity and crop yields.

Rural communities and agricultural employment

The partnership also intends to extend economic benefits to communities surrounding participating farms. Abdulhameed said local communities would be involved in projects developed in their areas, while military personnel and veterans could also participate in agricultural activities.

Technology, innovation and improved farming skills are expected to form part of the programme’s approach to increasing productivity and making more effective use of available land.

Ogunseinde said insecurity had disrupted farming and contributed to the abandonment of agricultural land, limiting Nigeria’s ability to meet its food requirements through domestic production.

Expanding agricultural activity could strengthen the sector’s contribution to the economy. The source cited an estimate that agriculture accounts for between 25% and 27% of Nigeria’s gross domestic product.

The partners also intend to produce commodities that meet domestic and international market requirements, potentially creating additional export opportunities.

However, the agreement remains a broad framework for cooperation. The institutions have not yet disclosed specific production targets, the total area to be cultivated, expected job creation or the overall financing required. Individual projects must still undergo further assessment and structuring before implementation.