In a remarkable turnaround, foreign direct investment (FDI) in Nigeria’s agricultural sector has reached its highest point in four years, driven primarily by a boom in the livestock subsector. The surge in investments comes despite ongoing security challenges, signaling renewed investor confidence in the sector’s growth potential.
According to an analysis of the latest Capital Importation Data by BusinessDay, food sector FDIs surged by a staggering 1,000 percent in the first quarter (Q1) of 2025, rising to $24.25 million (N3.7 trillion) from just $1.76 million (N268.6 billion) in the same period last year.
Experts have attributed this dramatic rise to an expanding livestock industry, which has become a focal point for both local and foreign investors looking to tap into Nigeria’s agricultural potential. Despite the backdrop of worsening insecurity, this growth signals that investors are increasingly seeing the agricultural sector as a safe and profitable avenue for long-term investment.
“This surge is a clear indication of the sector’s vast potential, and it’s encouraging to see such confidence despite the challenges facing the broader economy,” said a leading agricultural economist. “The livestock subsector is leading the charge, but this could have wider implications for the entire agricultural value chain, boosting employment and food security.”
Unprecedented Growth
The jump in FDI in the agricultural sector highlights the growing recognition of Nigeria’s agricultural assets. The growth in food sector investments is particularly notable when considering that, just a few years ago, agricultural FDIs were struggling to attract attention amid the country’s economic volatility and security concerns.
The data shows that the boost in investments is concentrated in livestock farming, with large-scale operations receiving significant international backing. Experts predict that this surge could serve as a catalyst for further growth in Nigeria’s food sector, providing a vital foundation for the country’s economic diversification away from oil dependency.
Investor Confidence Amid Insecurity
While some sectors of the economy continue to suffer from instability, the agricultural sector, particularly livestock, remains resilient. The substantial increase in FDIs is seen as a vote of confidence in the sector’s long-term viability, particularly as food security becomes an increasingly urgent concern.
Despite the ongoing security challenges, the livestock subsector continues to show promise, attracting global investors who see the potential for growth in the rapidly developing markets of sub-Saharan Africa. This trend reflects a broader shift in foreign investment preferences, as companies look for emerging markets that can provide both short-term returns and long-term stability.
A Bright Future for Agriculture
The significant growth in agricultural FDIs, particularly in livestock, positions Nigeria to become a leading player in global agricultural markets. Industry analysts are optimistic that this momentum will continue, with agricultural innovation and sustainable practices becoming key factors in attracting further foreign investment. The increasing recognition of the sector’s potential could lead to job creation, improved infrastructure, and a more diversified economy, moving Nigeria further away from oil dependency.