Nigeria Seeks UK investment to strengthen climate resilient agriculture. (Image credit: Federal Ministry of Information and National Orientation)

Nigeria is stepping up efforts to attract international investment into its agricultural sector, with a strong focus on building a resilient and sustainable food system.

This call was made during the Nigeria United Kingdom Investment Forum held in London, where the Minister of Agriculture and Food Security, Abubakar Kyari, outlined the country’s vast potential and urgent needs.

He explained that agriculture remains central to Nigeria’s economy, employing close to 70 percent of the workforce and contributing more than 24 percent to national GDP. With its diverse climate and fertile land, the country is well positioned to produce key crops such as rice, maize, cassava, cocoa and sorghum at a competitive level for both local and global markets.

Despite these strengths, climate change continues to pose serious risks. Changing rainfall patterns, drought, flooding and desertification are already affecting productivity and threatening food security. This has made the shift to climate resilient farming practices a national priority.

The Minister noted that one of the biggest challenges facing the sector is limited access to finance. While some credit schemes exist, they fall far short of what is needed to support farmers and scale innovation.

“While public financing remains essential, unlocking the scale of investment required will depend on stronger participation from private capital and development finance partners.

“Access to finance is a major constraint for farmers across Nigeria, significantly limiting the productivity across the sector. Despite the prevalence of credit schemes across the country, total credit accessible by farmers is still significantly limited, reaching 3.4trillion as at April 2025. Whilst this value may look significant, it is less than 4% of the contribution of agriculture to the country’s GDP.” Kyari said.

In response, the government under Bola Ahmed Tinubu has introduced reforms and programmes to improve productivity and resilience. These include solar powered irrigation systems, improved seed varieties, mechanisation support and better storage infrastructure.

Nigeria is also strengthening key institutions to reduce investment risks and improve confidence among global partners. The Minister encouraged UK investors to explore opportunities across the value chain, from irrigation and logistics to processing and storage.

He concluded by stressing that Nigeria has both the capacity and determination to transform its agricultural sector, while contributing to global food security in the face of climate challenges.

EIB Global and BOI Partner to boost sustainable agriculture in Nigeria.(Image credit: EIB)

EIB Global and the Bank of Industry (BOI) have signed an US$98.64mn agreement to strengthen agricultural value chains in Nigeria, with a strong focus on sustainability and private sector development.

The partnership, announced during the Nigeria-EU Ministerial Summit in Abuja, targets cooperatives, MSMEs, and private sector companies, with at least 70 percent of loans directed to the cocoa and dairy sectors.

The initiative, supported under the EU Global Gateway programme, aligns with Nigeria’s goals for sustainable agriculture, financial inclusion, and rural development. The funding is dedicated to enhancing productivity, improving value addition, and creating stronger linkages across the agricultural value chains, ultimately boosting incomes and livelihoods for processors and agribusinesses.

Olasupo Olusi, Managing Director and CEO of BOI, said,“This agreement reinforces the Bank of Industry’s commitment to unlocking long-term, affordable finance for priority sectors that drive inclusive growth.By partnering with EIB Global, BOI is scaling support for sustainable agriculture, strengthening critical value chains and enabling Nigerian agribusinesses to grow competitively while meeting international environmental and social standards.”

The project also emphasises compliance with environmental and social standards, the EU Regulation on Deforestation, and EU environmental guidelines. It aims to conserve biodiversity, reduce environmental impacts, and promote inclusive rural development, consistent with the EIB Climate Roadmap and the EU Green Deal. In addition, EIB Global will provide technical assistance to support BOI’s climate action strategy and strengthen the agriculture sector’s capacity to manage environmental and social risks.

Ambroise Fayolle, Vice President of EIB, said, “I am delighted that EIB is financing this project with the Bank of Industry for the development of agricultural value chains in Nigeria, including sustainable cocoa. Such investment is important for the country in terms of employment, health, and economy, with real impact on local population.” He added that the initiative aligns with the EU Global Gateway strategy and supports the sustainable transformation of Nigeria’s agricultural sector.

Jozef Sikela, Commissioner for International Partnership of the European Commission, added, “This investment strengthens cocoa and dairy value chains in Nigeria, where both sectors already employ thousands of farmers and workers and have clear potential for local processing and growth. This way, we help create more jobs and ensure that more value stays in Nigeria.”

Since 1978, EIB has invested US$2.67bn in Nigeria, supporting transformative projects in sustainable urban transport, climate adaptation, innovation, digitalisation, and agribusiness, helping to drive long-term economic growth.

Nigeria launches US$50mn fund to support startups. (Image credit: NSIA)

Nigeria is taking a significant step to strengthen its startup ecosystem with the launch of a new US$50mn Impact Innovation Fund.

The initiative is a joint effort between the Nigeria Sovereign Investment Authority and the Japan International Cooperation Agency, designed to support early stage businesses working to solve key social challenges.

The fund will focus on startups operating in areas such as agriculture, healthcare, education, energy, waste and water management. By targeting these sectors, the initiative aims to support solutions that directly improve everyday life while also driving economic growth.

JICA will contribute US$14mn in grant funding, while NSIA will provide up to US$20mn to match the support. The fund will operate as a public investment platform within Nigeria, combining financial backing with technical support. This approach is intended to help startups develop their products, strengthen their operations and expand into new markets.

Beyond funding, the initiative is expected to play a wider role in job creation and improving livelihoods. By backing innovative businesses at an early stage, the fund aims to unlock new opportunities and encourage long term development across the country.

Aminu Umar Sadiq,Managing Director and CEO of NSIA,said, “The Fund represents a transformative step for Nigeria’s startup ecosystem. By providing early-stage ventures in high-impact sectors with the capital and support they need to grow, we are enabling innovators to tackle some of Nigeria’s most pressing challenges. Our collaboration with JICA underscores our commitment to entrepreneurship, inclusive growth, and sustainable development.”

Work is already underway to put the fund into action, with plans to identify and support promising startups ready for investment. The focus will be on building a strong pipeline of businesses that can deliver real impact while also scaling sustainably.

NSIA continues to position itself as a key driver of economic progress through partnerships that expand access to funding, encourage innovation and support inclusive growth across Nigeria.

Ethiopia pushes private investment to strengthen agribusiness. (Image credit: ENA)

Ethiopia is increasing its focus on transforming the agribusiness sector, with government leaders encouraging greater private investment to improve food security and reduce dependence on imports.

The move reflects a wider national effort to strengthen domestic production and build a more resilient agricultural system.

Agriculture Minister Addisu Arega highlighted the important role private investors play in driving change across the sector. Speaking at a stakeholder consultation forum in Addis Ababa, he noted that Ethiopia’s Medemer State philosophy places strong emphasis on achieving food self sufficiency and supporting long term growth.

“The concept of Medemer is primarily focused on ensuring that the country achieves sufficient food production and becomes self-sufficient,” Addisu said.

The country is currently rolling out reforms under its updated Agricultural and Rural Development Policy, where agricultural investment has been identified as a key priority. The government is looking to increase both the scale and quality of production by encouraging more participation from private businesses.

At present, around 8,742 investors are active in the sector, with close to 2.3 million hectares of land allocated for agricultural use. However, performance remains uneven, with only a portion of the land being fully utilised.

“Only about 45 percent of the allocated land is currently under active use, which shows the need to strengthen productivity and operational efficiency,” he said.

Addisu also pointed out that Ethiopia still trails behind several countries in agribusiness development, particularly in adopting modern technology and innovative farming methods. He referenced Vietnam, Malaysia and Indonesia as examples where innovation has helped boost productivity and competitiveness.

State Minister of Agriculture Meles Mekonen reinforced the sector’s importance to the national economy, especially in creating jobs and supporting livelihoods.

“Agriculture not only provides a foundation for food security but also creates employment opportunities, particularly for a large number of youths and women,” Meles said.

He added that improving access to modern techniques, better land use and continued government support will be key to unlocking the sector’s full potential and ensuring reliable access to safe and affordable food.