Niger State has secured its biggest investment yet through a ₦1.8 trillion guaranteed offtake agreement with Dangote Industries Ltd, aimed at creating Nigeria’s largest rice farm. The official signing took place at the Lagos office of Alhaji Aliko Dangote, President of Dangote Group, marking a major step in agricultural investment and food security.

Speaking at the event, Niger State Governor Mohammed Umaru Bago described the deal as “a game-changer for Niger State.”

He emphasized that the agreement would open up huge economic opportunities, support food production, and create thousands of jobs. “This historic partnership guarantees a stable market for our farmers, ensuring continued production and economic growth,” Bago stated.

The 10-year project, facilitated by the Niger State Investment Promotion Agency (NSIPA), will be developed across 25,000 hectares of land. Niger Foods Security Systems and Logistics Ltd will supply high-quality paddy rice to Dangote Rice Limited, building a strong and sustainable agricultural value chain.

The initiative is expected to support 50,000 local farmers and create 50,000 direct jobs, boosting both employment and food availability in the region.

Water for the rice farms will be sourced from the Rivers Niger and Kaduna, making efficient use of natural resources to increase rice output. This move further positions Niger State as a key player in Nigeria’s agricultural transformation. The agreement aligns with the African Continental Free Trade Area (AfCFTA), enhancing intra-African trade and regional integration.

Dr. Abdullahi Bala, Managing Director of NSIPA, said the agency’s role in facilitating the deal reflects Niger State’s proactive stance on drawing in high-impact investments.

“We are laying the foundation for long-term prosperity and placing Niger State at the heart of Nigeria’s food security plan,” he said.

This major investment sets a national benchmark for state-level public-private partnerships and signals a new era of industrial-scale agriculture in Nigeria, with Niger State taking the lead.

The Federal Government has praised the launch of the Produce for Lagos Programme alongside the introduction of a ₦500 billion Off-Take Guarantee Fund, describing both as key steps in achieving national food security and economic growth under President Bola Ahmed Tinubu’s Renewed Hope Agenda.

Recall that Sanwo-Olu launched Produce for Lagos Programme, on Wednesday, July 23 2025.

Speaking during the groundbreaking ceremony in Lagos, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, expressed strong support for the initiative. He was represented by the Honourable Minister of State for Finance, Dr. Doris Uzoka-Anite.

In his remarks, Mr Edun stated, “This programme underscores our collective commitment to national food security and exemplifies the transformational power of partnership across levels of government and the private sector.”

He noted that the initiative supports agriculture as a foundational and futuristic pillar of Nigeria’s national development, aligning directly with the Renewed Hope Agenda.

The Minister explained that the programme is set to unlock the productive potential of stakeholders across the agricultural value chain. “It will empower farmers, traders, processors, and transporters, while also encouraging inter-state economic solidarity,” he said.

Highlighting Nigeria’s strengths, Edun said, “We are blessed with vibrant populations, abundant natural resources, and an entrepreneurial spirit that positions us not as competitors, but as partners with a shared vision of resilient economies, inclusive growth, and sustainable development.”

A central feature of the initiative is the ₦500 billion Off-Take Guarantee Fund. According to the Minister, this funding mechanism offers direct support to farmers, agribusinesses, and investors by reducing investment risks.

“It tells every farmer that their sweat will be matched with sustainability. Every agribusiness that their risks will be reduced. Every investor that agriculture is bankable, investable, and scalable,” Edun stated.

He also reaffirmed the Federal Government’s commitment to overhauling the agricultural sector through various initiatives. These include the Presidential Initiative on Compressed Natural Gas (CNG), the National Agricultural Growth Scheme and Agro-Pocket Programme (NAGS-AP), and the development of Special Agro-Industrial Processing Zones (SAPZs).

The Minister further mentioned a $1 billion agreement with the Government of Brazil under the Green Imperative Project. This deal is aimed at transforming Nigeria’s agricultural system through the delivery of 10,000 tractors, modern farm tools, and agro-processing equipment.

Commending the vision behind the Produce for Lagos Programme, Edun called for broad-based support. “Let it be a call to action for all stakeholders to join hands in building a future where Lagos feeds itself—and contributes meaningfully to national food sufficiency,” he concluded.

Lagos State Governor, Mr Babajide Sanwo-Olu, on Wednesday, July 23, 2025, launched the Produce for Lagos Programme and unveiled the ₦500 billion Offtake Guarantee Fund, an ambitious step towards ensuring food security, reducing food imports, and improving agricultural productivity across Nigeria.

Recall that the state government earlier announced the launch.

The launch, held at the Lagos House in Ikeja, was attended by key government officials, private sector leaders, state governors, and representatives of federal ministries and agencies. The initiative is a major part of Governor Sanwo-Olu’s strategy to reposition Lagos as a central hub in Nigeria’s food economy.

Speaking at the event, Governor Sanwo-Olu explained that the programme reflects his administration’s deep commitment to achieving sustainable food systems.

“The Produce for Lagos Programme and the ₦500 billion Offtake Guarantee Fund demonstrate our commitment to food security, inclusive prosperity, and sustainable growth. This is not just for Lagos State but for the entire nation,” he stated.

Governor Sanwo-Olu revealed that Lagos is the largest food market in Nigeria, consuming over 50 per cent of the food traded in the South-West region, with a food economy valued at ₦16.14 trillion. The new programme, he said, is designed to offer guaranteed off-take contracts, financial support, and logistics access to connect farmers and food producers directly with Lagos’s vast food consumption network.

“This initiative will boost agricultural production and reduce reliance on informal and uncoordinated supply channels,” he added. “It will create jobs for our youth and increase economic returns for all ecosystem stakeholders.”

Governor Sanwo-Olu also commissioned the deployment of 150 cold and dry trucks—the largest fleet of its kind in Nigeria—through a partnership with the private sector. He noted that the vehicles will improve food preservation and reduce post-harvest losses across supply chains.

The project will be implemented through the Lagos Food Systems Infrastructure Company (LAFSINCO) and will be supported by several Special Purpose Vehicles including the Lagos Bulk Trading Company, Ekolog (Eko Logistics), and the Produce for Lagos Fund.

He elaborated on the financial structure of the programme, saying, “This ₦500 Billion Offtake Guarantee Fund will provide working capital for bulk traders, finance for logistics operators, liquidity for aggregators, and credit support for food producers across Nigeria.

It is a demonstration that our food economy cannot thrive on policy alone – it requires financing.”

Governor Sanwo-Olu clarified that the fund is not a subsidy. “This fund is an investment vehicle that will catalyse private capital, stabilise food prices, and de-risk agricultural operations across the value chain. What we are doing here is creating a whole new agricultural ecosystem, one that rises to meet the demands of today and of tomorrow—combining policy, financing, infrastructure, and data,” he said.

Calling for nationwide support, the Governor urged other states and stakeholders to partner with Lagos. “Let us rise together to feed this nation sustainably. Let us collaborate across borders, build resilient infrastructure, support, and secure our food future not just for Lagos but for Nigeria. Let us lead, let us inspire, and let us grow for the prosperity of our people and the greatness of our country,” Sanwo-Olu appealed.

Several state governors praised the initiative, highlighting its potential to foster inter-state agricultural collaboration. Governors Dapo Abiodun of Ogun State, Mohammed Bago of Niger State, Agbu Kefas of Taraba, and Usman Ododo of Kogi State commended the programme and pledged support.

These states are expected to be major contributors to the Produce for Lagos programme, leveraging their comparative agricultural advantages.

In a show of private sector backing, the chairman of Heirs Holdings, Transcorp, and UBA, announced a ₦25 billion donation to the programme. Speaking at the event, he emphasized the importance of agriculture in addressing unemployment among Nigerian youths.

“It’s a very important initiative that all of us should appreciate. We have a lot of unemployment in our country. Agriculture and food systems are very important in fixing the issue of youth unemployment. What you and your team are doing here, and what other governors are doing in their states, collectively, in a few years’ time, will help us fix the challenge of joblessness of our loved ones,” he said.

“We believe that joblessness is a betrayal of our young people. All of us will work together to make this vision, this initiative a reality. We support this initiative with ₦25 billion.”

The event also received federal-level endorsement. The Minister for Digital Economy, Bosun Tijani; the Minister of Livestock, Idi Maiha; and the Minister of State for Finance, Doris Aniete, expressed their support for the Produce for Lagos Programme. They praised the Lagos State government for its leadership in food policy and commended the collaborative spirit driving the programme.

The Chief of Defence Staff, General Christopher Musa, also expressed confidence in the success of the initiative, noting its relevance to national food security.

“We believe this initiative will work well in addressing food security challenges in the state,” he said. He confirmed that the Armed Forces of Nigeria are prepared to support the programme in every way possible.

Lagos State Commissioner for Agriculture and Food Systems, Abisola Olusanya, outlined the goals of the programme, saying it aims to centralise agricultural aggregation to reduce post-harvest losses, stabilise food prices, and enhance the logistics of urban food supply.

She also highlighted Lagos State’s ongoing commitment to agricultural development through initiatives such as the Lagos Innovation Club, Lagos Food Festival, Lagos Agriculture Scholars Programme, and the Lagos Apprenticeship Programme. These programmes are designed to support agricultural entrepreneurs and promote food culture among the youth and general population.

Speaking on behalf of the private sector, Chairman of Origin Tech Group, Prince S. J. Samuel, reaffirmed the business community’s commitment to Lagos State’s agricultural transformation. He called for continued and increased partnerships between the public and private sectors to ensure food security for Lagos and Nigeria as a whole.

The Produce for Lagos Programme and its ₦500 billion Offtake Guarantee Fund mark a turning point in Lagos State’s agricultural policy, bringing together government, private investors, and other states to build a stronger and more resilient food economy.

With logistics infrastructure, financing tools, and inter-state partnerships now in place, the initiative is expected to drive employment, enhance food availability, and provide economic stability for producers and consumers alike.