Nigeria ramps up FDI, FPI as new foreign investment inflow arrives· It’s that type of transaction that Mr. President encourages – Edun

There are indications that more foreign investment inflows are being recorded at the backdrop of the various investment diplomacies and activities of the coordinating ministry for the economy.

The foreign investments are both in direct and portfolio categories.

New inflows in form of Foreign Direct Investments, FDIs, recorded in the past two months include that of JBS Company of Brazil and Saudi Arabia’s SALIC International Investment Company, both of which have a combined investment commitment of $3.7 billion between November and December 2024.

These are coming on the heels of similar commitments amounting to about $30 billion recorded between fourth quarter 2023 and third quarter 2024.

In addition, the economy has also recorded significant inflows in Foreign Portfolio Investments, FPIs, through the Nigerian Exchange Limited, NGX, in recent months.

The FDIs
The Brazilian meatpacker, JBS, agrees to invest $2.5billion in building six meat processing factories in Nigeria.

JBS said two weeks ago that it has signed a memorandum of understanding with Nigeria’s government for a $2.5 billion investment plan in the economy.

In a statement, JBS said three of the factories would deal in poultry, two in beef and one in pork.
Based on the memorandum of understanding, JBS said it will build up a five-year investment plan in Nigeria, including feasibility studies, budget estimates and an action plan for local supply chain development.

‘‘The government of Nigeria, in turn, would ensure the economic, sanitary and regulatory conditions needed for the project’s viability’’, JBS added.

Also on new FDI inflows, Saudi Arabia’s SALIC International Investment Company said it is injecting fresh $1.2 billion investment in Nigeria’s livestock sector.

Minister of Finance, Wale Edun, made this announcement following a meeting with President Bola Tinubu in Lagos in November 2024.

The investment is tied to SALIC’s acquisition of a 35.43% stake in Olam Agri Holdings for a substantial $1.24 billion, marking a significant boost to Nigeria’s agricultural and livestock sector.
While announcing the investment inflow, Edun emphasized the administration’s commitment to fostering a stable macroeconomic environment that attracts high-value foreign investments.

‘‘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.

He added, “It’s that type of transaction that Mr. President has taken the steps of stabilizing the Nigerian macro-economic environment to encourage.”

The deal, which closed on December 23, 2024, values Olam Agri Holdings at $3.5 billion. Olam Group retains a controlling 64.57% stake in the agricultural unit. The transaction, initially announced in March 2022, solidifies Olam Agri’s position as a key player in global agriculture while opening up new opportunities for Nigeria’s livestock industry.

As part of the agreement, Olam Agri and SALIC have established a Strategic Supply & Cooperation Agreement. This partnership aims to expand Olam’s footprint in the Middle Eastern markets while leveraging SALIC’s expertise in livestock and agriculture to strengthen Nigeria’s agricultural exports.

Industry experts have hailed the transaction as a milestone for Nigeria’s agricultural sector, noting its potential to enhance food security, drive foreign exchange earnings, and create employment opportunities.

The strategic partnership is expected to foster technology transfer, improve farming techniques, and introduce innovative solutions to Nigeria’s livestock and broader agricultural value chains.