Blumberg Grain, a US-based multi-national food security firm, has signed a letter of intent with the Nigerian federal government to invest around $250m in the country's agribusiness sector.
The investment will be used for the establishment of large scale food storage facilities for Nigeria's agricultural sector, a move that is expected to create around 1,000 jobs and boost food production.
Under Nigeria's Agricultural Transformation Agenda, the goal is to add 20 million MT of food to the domestic food supply by 2015, according to the government.
Specifically, the investment will see the development of a Blumberg Grain Manufacturing Plant and Export Hub that in addition to significant job creation will increase exports of "Made in Nigeria" manufactured products.
It will make Nigeria the region's agribusiness center for food safety and security; utilize Nigerian companies to provide raw materials and local content for production; empower local distribution and construction partners to generate additional business and employment; create an Agricultural Institute to assist farmers in generating higher crop yields; and maintain a focus on youth employment in the agricultural sector through job creation, training and skills transfer.
Commenting on the transaction, Nigeria Minister of Agriculture and Rural Development, Akinwumi Adesina said that by developing storage warehouses in the country, farmers, agro-processors and financial services industry will be able to reduce post-harvest losses, improve market access and incomes across agricultural, value chains.
"Our goal is to make Nigeria a global powerhouse in food. This investment will further enhance Nigeria's regional position in agriculture," added Adesina.
Blumberg Grain noted that Nigeria represents one of the largest agricultural markets across the world, and also provides it with a significant opportunity to establish a major presence in West Africa. The company provides vertically integrated crop and food storage systems, technology and management.