Nigeria, Brazil sign $1.1bn agreement to boost food production, strengthen private sector investment

This agreement, signed on Monday at the Presidential Villa in Abuja, aims to enhance food production, promote sustainable agriculture, and bolster private-sector investment in Nigeria.

The GIP is the largest agricultural initiative on the continent, prioritizing the development of sustainable, low-carbon farming practices.

The project is designed to create structural conditions that will drive food production efficiency and competitiveness across Nigeria. It seeks to address the long-standing challenges in the agricultural sector by integrating small-scale farmers into robust agricultural value chains.

The Memorandum of Understanding (MoU) for GIP Phase 1 was initially signed in 2018, paving the way for additional agreements.

The second phase, valued at $4.3 billion, along with the $2.5 billion Joint Bilateral Strategy (JBS), was finalized in Brazil earlier this year during President Bola Ahmed Tinubu’s official visit, a statement signed by Stanley Nkwocha, Senior Special Assistant to The President on Media & Communications (Office of The Vice President) noted.

Speaking at the signing event, Vice-President Kashim Shettima emphasized that the GIP aligns with the Tinubu administration’s commitment to achieving food security and economic growth. He noted that the initiative plays a critical role in implementing the administration’s eight-point agenda, which includes job creation and economic diversification.

“As this administration addresses the food security challenges we are facing and dovetails the 8-point agenda of President Bola Ahmed Tinubu, it is imperative for us to synergise and use existing initiatives such as the GIP for the purpose of policy continuity, for the purpose of utilising or leveraging on strategic opportunities to drive our economic growth and also to enhance investor confidence,” Shettima stated.

The Vice President further underscored the project’s private-sector-driven nature, ensuring that small-scale farmers are directly linked to value chains, enhancing productivity, and securing long-term sustainability. He described the agreement as a major milestone in Nigeria’s journey towards agricultural modernization.

Strategic Investment and Private-Sector Collaboration

Shettima emphasized that the GIP would leverage strategic investments to boost investor confidence and create an enabling environment for private-sector participation. He noted that Nigeria has struggled with low agricultural productivity for decades, despite the entrepreneurial drive of its people.

He said, “We have been battling with low agricultural productivity for decades, and as I have always said, entrepreneurial capitalism is embedded in the very psyche of the average Nigerian, but what our people are lacking is the wherewithal to be placed on the first ladder of development. 

“This GIP is a wonderful opportunity because it seamlessly aligns with all the policies and programmes of this government. It’s a private sector-driven initiative that targets the small-scale farmer and links him up with all the agricultural value chains.,” he added.

The Ambassador of Brazil to Nigeria, Carlos Garcete, expressed his country’s commitment to strengthening Nigeria’s agricultural sector.

He highlighted the lengthy negotiations between Brazil and Nigeria to secure funding from private and regional development banks, culminating in this historic agreement.

Garcete stated “over the past seven years, there has been negotiation with the Nigerian government with a view to obtaining the necessary funds from private and regional development banks to finance this ambitious project, which is worth approximately $1.1billion dollars.”

Garcete stated “over the past seven years, there has been negotiation with the Nigerian government with a view to obtaining the necessary funds from private and regional development banks to finance this ambitious project, which is worth approximately $1.1billion dollars.”

The project will facilitate the importation of essential agricultural equipment, including tractors and spare parts, with assembly operations taking place in Nigeria.

This strategy will not only reduce costs but also create employment opportunities and enhance local capacity.

“In the event of a tractor breakdown, repairs can be conducted in Nigeria by personnel trained under the GIP framework,” the Brazilian envoy added.

Jigawa State Governor Umar Namadi lauded the agreement, noting its significance at the sub-national level, given agriculture’s critical role in Nigeria’s economy.

“For us at the sub-national level, this is a historic moment. Agriculture plays a pivotal role in our economic structure, and this agreement demonstrates a strong commitment from the highest levels of government,” he remarked.

Benue State Governor Hyacinth Alia also expressed enthusiasm, highlighting the state’s position as the food basket of the nation.

“Benue State does not only hold the basket but the food and its surpluses for the nation,” he assured.

Minister of Foreign Affairs, Ambassador Yusuf Tuggar, described the agreement as a prime example of South-South cooperation between Nigeria and Brazil.

He emphasized the potential benefits, particularly considering Brazil’s transformation of barren savannahs into highly productive agricultural hubs.