FG moves to revive large-scale agric investments in communities hit by insecurity
By Mohammed Ismail
The Federal Government has stepped up efforts to revive large-scale agricultural investments in communities ravaged by insecurity, unveiling a security-backed investment framework designed to restore investor confidence and unlock private-sector funding for major farming projects.
The initiative 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, to integrate security, investment mobilisation and project management in agricultural development.
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The move is expected to address one of the major barriers to agricultural investment in Nigeria, particularly in rural communities where insecurity has discouraged investors from committing substantial capital to farming and agro-industrial ventures.
Dr Femi Ogunseinde, MOFI’s Executive Director of Investments and official responsible for the Integranium investment framework, said the partnership would enable the government and its partners to approach prospective investors with a more credible security arrangement for protecting their investments.
He said the absence of reliable security guarantees had continued to frustrate efforts to attract domestic and foreign capital into large-scale agricultural projects, despite the enormous opportunities available across the country.
Ogunseinde cited proposed soybean production in Yobe State and sugarcane cultivation in Jigawa State as examples of multibillion-dollar agricultural ventures whose investment prospects depend partly on resolving security concerns.
“We have a soybean initiative in Yobe, we have a sugarcane initiative in Jigawa—all large-scale, all multibillion-dollar projects,” he said.
According to him, investors are unlikely to commit substantial funds to agricultural ventures without adequate assurances that their investments, personnel and operations will be protected.
“Without having that security anchor to ensure that whatever comes from wherever to invest, the investments are safe, it becomes very difficult for us to do anything,” he added.
He said the partnership would provide a platform for engaging prospective investors and demonstrating that security risks were being incorporated into the planning and implementation of agricultural projects.
The framework is expected to mobilise substantial private-sector and international financing, reducing dependence on government funding while opening up opportunities for commercial agriculture and agro-industrial development.
The agreement will cover risk management, security planning and project execution, with DAPCO working alongside MOFI and its investment partners to identify, structure and implement viable agricultural ventures.
The Chairman and Chief Executive Officer of DAPCO, Aliyu Abdulhameed, said the defence establishment would help ensure that investment capital reached agricultural opportunities in rural communities under secure and properly structured arrangements.
He noted that many commercially viable agricultural projects were located far from major urban centres, making security a critical factor in investment decisions.
Abdulhameed said the collaboration would combine the respective strengths of the participating institutions to develop agricultural projects capable of expanding production and stimulating economic activity across the country.
Ogunseinde disclosed that the partners had identified several investment opportunities and expressed optimism that at least one project would commence construction before the end of the year.
He, however, did not disclose the project selected for commencement or provide a specific date for the groundbreaking. He explained that each proposed venture would undergo individual assessments covering financial viability, investment potential, due diligence and value for money before implementation.
Beyond addressing security concerns, the initiative is designed to attract capital into Nigeria’s agricultural resources, expand domestic food production and increase supplies for industrial processing and export.
The Group Managing Director of Defence Holding Company Limited, Air Vice Marshal A.V. Ndache, said the memorandum of understanding signed by the institutions established a broad framework for cooperation covering agriculture, hospitality and other investment opportunities.
He explained that more detailed agreements would be negotiated for individual projects as the partnership progresses.
Ndache said the collaboration was intended to boost national productivity and support the Federal Government’s food security agenda under President Bola Tinubu.
Similarly, Dr Armstrong Takang, managing director of MOFI’s investment partner, said expanding local agricultural production could help ease food inflation by increasing the volume of food available for household consumption and industrial use.
He stressed the need for Nigeria to harness its land, water resources and human capital to produce sufficient food for domestic demand while generating additional supplies for export.
Takang said the partnership would prioritise bankable agribusiness opportunities capable of attracting financing from both public and private investors.
He added that the projects were expected to support large-scale agricultural operators and stimulate investment across the farming value chain.
