NIGERIA – Niger Foods, the agribusiness company controlled by the Niger State government, has signed a US$2 billion memorandum of understanding (MoU) with Turkish company Direkci Group to supply soybeans over the next decade.
This deal, announced on September 16, 2024, marks a turning point for both Niger Foods and the farmers of Niger State, positioning the company as a major player in Nigeria’s soybean industry.
Under the terms of the agreement, Niger Foods will supply 500,000 tons of soybeans annually, amounting to a total of 5 million tons over 10 years.
Valued at US$200 million per year, this deal is set to provide a steady and secure market for the local farming community, driving growth and sustainability.
According to Sammy Adigun, Chairman of Niger Foods, the agreement is designed to empower local farmers, giving them the resources, they need to increase production.
“This partnership guarantees our farmers a secure market, enabling them to focus on improving productivity. Niger Foods will provide farmers with high-quality seeds, fertilizers, and other inputs to boost yields and efficiency,” said Adigun.
Niger State currently accounts for around 6% of Nigeria’s national soybean production, contributing 75,000 tons in 2021 out of the country’s total of 1.1 million tons, according to the Ministry of Agriculture.
Modernization and large-scale farming
In addition to the soybean supply agreement, the Turkish partner, Direkci Group, has announced plans to establish a 30,000-hectare irrigated soybean farm in Adunu, Paikoro Local Government Area.
This will be one of the largest such initiatives in the region, designed to complement Niger Foods’ efforts by introducing advanced farming techniques and infrastructure to increase production.
Niger Foods is committed to working closely with Direkci Group on this project, ensuring that local farmers are trained and involved in the adoption of modern agricultural practices.
The farm, which is expected to serve as a model for other regions, will help boost local soybean production and agricultural innovation throughout the state.
Furthermore, the Turkish company plans to develop a poultry farming project in Niger State, diversifying the agricultural opportunities for the state’s farmers. The poultry initiative will help create jobs and further integrate farming communities into value-added industries.
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