Saudi Arabia Bets Big on Nigeria: $1.2 Billion Livestock Investment Set to Revolutionize Agriculture

By Achimi muktar

In a landmark move poised to transform Nigeria's agricultural landscape, the Federal Government has confirmed a $1.24 billion investment by Saudi Arabia’s SALIC International Investment Company in Olam Agri Holdings. The acquisition, representing a 35.43% stake, underscores a renewed focus on boosting the nation’s livestock and agricultural sectors.

A Game-Changing Partnership

Minister of Finance Wale Edun announced the deal following a meeting with President Bola Tinubu in Lagos, highlighting the administration’s commitment to creating a stable macroeconomic environment that attracts foreign direct investments of such magnitude.

“You all know and we all heard that Saudi Arabia, the Saudi Agriculture and Livestock Investment Company, had just around the 23rd of December increased its investment in Olam by a $1.2 billion additional investment,” Edun stated. “It’s this type of transaction that Mr. President has taken steps to stabilize the Nigerian macro-economic environment to encourage.”

The deal, finalized on December 23, 2024, places Olam Agri Holdings’ valuation at $3.5 billion, with Olam Group retaining a controlling 64.57% stake. Beyond the financials, the partnership is set to revolutionize Nigeria’s livestock industry, bolstered by a Strategic Supply & Cooperation Agreement between Olam Agri and SALIC.

A Boost for Nigeria’s Agriculture

This collaboration aims to enhance Olam’s reach in Middle Eastern markets while drawing on SALIC’s expertise in livestock and agriculture to elevate Nigeria’s agricultural exports. Experts predict significant benefits, including improved food security, increased foreign exchange earnings, and job creation.

Technology transfer and modern farming techniques are expected to take center stage, introducing innovative solutions to Nigeria’s livestock and broader agricultural value chains. The deal also signals a major step forward in integrating Nigeria into global agricultural markets.

Strengthening Economic Ties

The announcement follows a high-level visit to Saudi Arabia by a Nigerian delegation led by Edun on behalf of President Tinubu and the Presidential Economic Coordination Council. During the visit, discussions with key Saudi entities like the Saudi EXIM Bank and the Saudi Development Fund centered on enhancing economic partnerships, export credit, and insurance frameworks.

The Saudi EXIM Bank expressed strong interest in expanding its collaboration with Nigerian institutions, setting the stage for future transactions involving Saudi government entities. Similarly, the Saudi Development Fund explored potential collaborations to boost infrastructure and economic development in Nigeria.

Industry Milestone

Industry stakeholders have hailed the investment as a watershed moment for Nigeria’s agricultural sector. “This is not just an influx of capital—it’s a strategic partnership that will elevate Nigeria’s position in global agriculture,” remarked a local industry expert.

The $1.2 billion investment represents more than just numbers; it is a vote of confidence in Nigeria’s potential to become a major agricultural powerhouse. With the Federal Government’s backing and a robust partnership with SALIC, the stage is set for Nigeria to achieve unprecedented growth in its livestock and agricultural sectors.

As 2025 unfolds, all eyes will be on the fruits of this collaboration, which promises to usher in a new era of prosperity for Nigeria’s farmers, industries, and economy at large.