Nigeria signs MoU with Brazil’s FGV to mobilize US$4.3B in agricultural sector investments

NIGERIA – Nigeria has signed a Memorandum of Understanding (MoU) with Fundação Getulio Vargas (FGV), a prominent Brazilian think tank, to bolster its agricultural sector.

The agreement, announced during the recent G20 Summit held in Rio de Janeiro from November 18–19, underscores Nigeria’s commitment to modernizing its agricultural industry and enhancing food security.

Agriculture remains vital to Nigeria’s economy, contributing 22% to GDP and employing approximately 38% of the workforce. However, challenges such as inadequate infrastructure, limited access to modern technology, and financing gaps persist.

The partnership with FGV seeks to address these bottlenecks by fostering innovation and providing access to advanced agricultural practices.

According to Temitope Fashedemi, Permanent Secretary at Nigeria’s Ministry of Agriculture and Food Security, the collaboration is poised to channel US$4.3 billion in private sector investments into critical areas such as fertilizer production, hybrid seeds, and agricultural financing.

“This partnership paves the way for Brazil’s engagement in Nigeria’s dynamic and growing agricultural sector,” said Fashedemi.

He added that, together with FGV, Nigeria is poised to unlock the potential of private sector investment in key areas for our food security.”

FGV is already deeply entrenched in Nigeria’s agricultural landscape through its implementation of the Nigeria-Brazil Agricultural Development Program, also known as the “Green Imperative Project.”

Launched in 2019 with a 10-year timeline and a budget of US$1.2 billion, this initiative aims to transfer cutting-edge agricultural technologies from Brazil to Nigeria, boosting local food production.

The latest MoU builds on this foundation, promising to expand the scope of collaboration and provide fresh momentum to the agricultural sector, which currently contributes 22% to Nigeria’s GDP and employs approximately 38% of the workforce.

Fertilizer sector, a key focus

One of the most promising aspects of this partnership is its potential to further Nigeria’s self-sufficiency in fertilizer production.

Data from the International Fertilizer Development Center (IFDC) reveal that local urea production has grown at an average annual rate of 17%, rising from 1.4 million tons in 2017 to over 3.6 million tons in 2023.

By fostering private investment, the government seeks to enhance productivity, reduce reliance on food imports, and strengthen resilience against global food security challenges.

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