Niger govt to provide 1.2 million hectares of land for livestock investment

Tribune | 24 November 2024

by Adelowo Oladipo

Niger State Government has promised to make available 1.2 million hectares of land for use as the Federal Government secures a $2.5B livestock investment with JBS, a Brazilian Multi National Company, one of the world’s largest meat processing enterprises.

The agreement is expected to develop Nigeria’s livestock industry and meat processing enterprise, Governor Mohammed Umaru Bago who was among the Nigerian government’s delegation present at the signing of letter of intent between JBS and the Nigerian Government which took place in Rio de Janeiro Brazil, said Niger State is always willing to support whatever venture President Bola Ahmed Tinubu is driving at.

The Governor also disclosed that Niger State has already provided itself as a pilot State for the project, stating that the economic impact of the initiative will create one million jobs, 100,000 new homes in farm estates, and the development of 100 agricultural facilities, while also acknowledging that the Sokoto-Badagry Super Highway, of which 125km pass through the State will be key enabler of the agricultural revolution.

President Bola Ahmed Tinubu during the signing of the agreement acknowledged that Niger State Government’s dedication is charting a new course for prosperity as the Federal Government seeks to work closely with the administration of Governor Umaru Bago to ensure that the project succeeds not only in strengthening food security but creates opportunities for teeming Nigerians.

He said his administration’s renewed focus in driving international and local investments into livestock sector of the agricultural value-chain will end the crisis of farmer-herder clashes, eradicate hunger and poverty in Nigeria as well as promote economic prosperity.

Other members of the delegation include the Minister of State for Agriculture and Food Security, Senator Aliyu Sabi Abdullahi, Co-chairman Presidential Livestock Reform Committee, Professor Attahiru Jega, the Secretary of the Committee, Professor Mohammed Kuta Yahaya, and the Chief Executive Officer of Nigerian Investment Promotion Council, Aisha Rimi.

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JBS | 22 November 2024

$2.5 Billion Investment Plan Over Five Years Includes Construction of Six Plants and Collaboration with the Nigerian Government to Boost Local Production

JBS, one of the world's largest food companies, signed a memorandum of understanding (MoU) with the Government of Nigeria on Thursday (November 21) to invest in developing sustainable supply chains for food production in the African country.

As Africa's largest economy and most populous nation, Nigeria also has one of the world's highest population growth rates. According to United Nations projections, Nigeria's population is expected to reach 400 million by 2050, up from its current 250 million. The country's GDP, currently at $363.82 billion, could more than double to $1 trillion by 2050. Simultaneously, Nigeria faces one of the highest rates of food insecurity globally, with 24.8 million people suffering from hunger (WFP). In Sub-Saharan Africa, 76% of the population living in extreme poverty depends on agriculture (WB).

"Our goal is to establish a strong partnership and support Nigeria in addressing food insecurity. Our experience in regions where we operate worldwide shows that developing a sustainable food production chain creates a virtuous cycle of socio-economic progress, particularly for vulnerable populations," said Gilberto Tomazoni, Global CEO of JBS.

Under the MoU, JBS will develop a five-year investment plan, including feasibility studies, preliminary project designs, budget estimates, and an action plan for supply chain development. The Nigerian Government, in turn, will ensure the necessary economic, sanitary, and regulatory conditions for the project's success. The agreement outlines the construction of six plants—three for poultry, two for beef, and one for pork—with an investment of $2.5 billion.

Protein production in Nigeria accounts for 10% of GDP and supplies 40% of domestic demand. Expanding local production has the potential not only to improve food security but also to significantly reduce imports, generate local jobs, and support millions of small-scale farmers.

A $2.5 Billion Investment Plan Over Five Years Includes Construction of Six Plants and a Partnership with the Nigerian Government to Boost Local Production

JBS's investment plan in Nigeria will include extensive efforts to develop local supply chains, providing support to small producers and promoting sustainable agricultural practices, similar to the company's initiatives with thousands of partners in other regions worldwide. One example is the Green Offices program, which offers free technical assistance to Brazilian farmers to increase production efficiency while meeting the highest socio-environmental standards.

According to a report by the B20 Food Systems Task Force, the business arm of the G20 during Brazil's presidency, stimulating productivity growth through the adoption of innovative technologies and technical assistance for farmers, especially smallholders, is essential to increase agricultural output while preserving natural resources and ensuring vulnerable populations have access to quality food. This recommendation was adopted in the G20 leaders' final declaration.

"Our goal is to collaborate with the Nigerian Government to support the implementation of the National Food Security Plan, sharing our expertise in developing sustainable agro-industrial supply chains and best practices to enhance the country's efficiency, productivity, and production capacity," Tomazoni concluded.

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Bloomberg | 21 November 2024

By Clarice Couto

The world’s largest meat producer JBS SA increased the most in more than three weeks after it announced plans to participate in a $2.5 billion project for the construction of meatpacking facilities in Nigeria — its first expansion into Africa.

JBS signed a memorandum of understanding with the Nigerian government to build three poultry plants as well as two for beef and one for pork in five years, the Brazilian company said in a statement.

More than half the investment forecast for the next five years should come from the company, according to JBS Global Chief Executive Officer Gilberto Tomazoni. The Nigerian government and local businesses are expected to become partners with a minority stake in the business.

Investing in Africa would give JBS, which owns processing facilities spanning from Colorado to New Zealand, an opportunity to diversify away from more mature markets including the US. The economy of Nigeria, which has a population larger than Brazil, is expected to more than double by 2050, the company said.

The company gained as much as 3.3% in Sao Paulo on Friday, the biggest intraday increase since Oct. 28.

“Our goal is to establish a solid partnership and support Nigeria in addressing food insecurity,” said Tomazoni. “Developing a sustainable food production chain generates a virtuous cycle of socioeconomic progress for the population, especially the most vulnerable groups.”

Brazilian meat producers have been preparing to expand after slashing debt as they seek to further capitalize on a surge in chicken profits.

“We see the strategic merit of such an operation,” Goldman Sachs analyst Thiago Bortoluci wrote in a note to clients. Nigeria’s growing population may create enough demand for JBS to build a business similar in size to that of its Brazilian chicken unit Seara, he said.

JBS is targeting a country with low meat consumption that has growth potential over the next decades, Tomazoni said in an interview. “Nigeria has a great consuming market there, so it is highly attractive,” he said.

JBS plans to initially build its own hatcheries and chicken farms needed to provide meat for slaughtering units. It will also develop small local producers to supply the company with chicken in the future.