Nigeria’s Federal Government has announced a $1.2 billion investment by Saudi Arabia’s SALIC International Investment Company into Nigeria’s agricultural sector.
This deal involves the acquisition of a 35.43% stake in Olam Agri Holdings, a development poised to transform Nigeria’s livestock and agricultural landscape.
Speaking after meeting with President Bola Ahmed Tinubu in Lagos, Finance Minister Wale Edun highlighted this investment as a direct outcome of the administration’s macroeconomic reforms, which have been strategically aimed at attracting foreign investments.
He emphasized the significance of the deal, stating, “This type of transaction reflects the success of Mr. President’s strategy, encouraging global investors to have confidence in Nigeria’s economic potential.”
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The transaction, finalized on December 23, 2024, values Olam Agri at $3.5 billion, with Olam Group retaining a 64.57% stake.
The partnership is expected to unlock technological advancements and innovative solutions across Nigeria’s agricultural value chains.
Furthermore, the Strategic Supply & Cooperation Agreement between Olam Agri and SALIC will enhance Nigeria’s agricultural exports and broaden Olam’s reach into the Middle East.
Experts have lauded the move, citing its potential to bolster food security, increase foreign exchange earnings, and create jobs. As SALIC focuses on investment without exporting its labor, the deal guarantees employment opportunities for Nigerians. Additionally, technology transfer and improved farming techniques are anticipated to significantly boost the sector’s productivity.
This development follows a high-level delegation’s visit to Saudi Arabia. The discussions with Saudi EXIM Bank and the Saudi Development Fund centered on expanding bilateral cooperation in export credit, insurance frameworks, and infrastructure development.
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Budget and Planning Minister Atiku Bagudu assured Nigerians that this investment is a testament to the country’s brighter economic prospects. “We’ve made tough choices, but we’ve turned a corner,” he said. “Expect a better economy, lower inflation, and increased opportunities in 2025.”
