Nigeria and Brazil have sealed the commercial phase of the $1.1 billion Green Imperative Project (GIP), which aims to increase agricultural output and private-sector investment in Nigeria.
This deal, signed on Monday, 17th of March at Abuja’s Presidential Villa, seeks to boost food production, promote sustainable agriculture, and boost private-sector investment in Nigeria.
The GIP is the continent’s most extensive agricultural program, focused on developing sustainable, low-carbon farming practices.
The project seeks to develop structural circumstances to improve food production efficiency and competitiveness throughout Nigeria. It aims to address long-standing issues in the agriculture sector by incorporating small-scale farmers into solid agricultural value chains.
The Memorandum of Understanding (MoU) for GIP Phase 1 was signed in 2018, laying the groundwork for future agreements.
A statement signed by Stanley Nkwocha, Senior Special Assistant to the President on Media & Communications (Office of the Vice President), noted that the second phase, valued at $4.3 billion, along with the $2.5 billion Joint Bilateral Strategy (JBS), was finalised in Brazil earlier this year during President Bola Ahmed Tinubu’s official visit.
Speaking at the signing event, Vice-President Kashim Shettima emphasised that the GIP aligns with the Tinubu administration’s commitment to achieving food security and economic growth. He noted that the initiative plays a critical role in implementing the administration’s eight-point agenda, which includes job creation and economic diversification.
“As this administration addresses the food security challenges we are facing and dovetails the 8-point agenda of President Bola Ahmed Tinubu, it is imperative for us to synergise and use existing initiatives such as the GIP for the purpose of policy continuity, for the purpose of utilising or leveraging on leveraging on strategic opportunities to drive our economic growth and also to enhance investor confidence,” Shettima stated.
The Vice President emphasised the project’s private-sector focus, which ensures that small-scale farmers are directly connected to value chains, increasing production and assuring long-term viability. He described the accord as a significant milestone in Nigeria’s agricultural modernisation efforts.
Shettima emphasised that the GIP would use strategic investments to promote investor confidence and create a conducive climate for private sector participation. He pointed out that Nigeria has battled with low agricultural output for decades despite its people’s entrepreneurial spirit.
He said, “We have been battling with low agricultural productivity for decades, and as I have always said, entrepreneurial capitalism is embedded in the very psyche of the average Nigerian, but what our people are lacking is the wherewithal to be placed on the first ladder of development.
“This GIP is a wonderful opportunity because it seamlessly aligns with all the policies and programmes of this government. It’s a private sector-driven initiative that targets the small-scale farmer and links him up with all the agricultural value chains.,” he added.
Carlos Garcete, Brazil’s ambassador to Nigeria, underlined his country’s commitment to developing Nigeria’s agriculture industry.
He noted Brazil and Nigeria’s extensive discussions to get money from private and regional development institutions, culminating in this historic deal.
Garcete stated, “Over the past seven years, there has been negotiation with the Nigerian government with a view to obtaining the necessary funds from private and regional development banks to finance this ambitious project, which is worth approximately $1.1 billion dollars.”
The project will facilitate the importation of essential agricultural equipment, including tractors and spare parts, with assembly operations taking place in Nigeria.
This strategy will not only reduce costs but also create employment opportunities and enhance local capacity.
“In the event of a tractor breakdown, repairs can be conducted in Nigeria by personnel trained under the GIP framework,” the Brazilian envoy added.
Jigawa State Governor Umar Namadi lauded the agreement, noting its significance at the sub-national level, given agriculture’s critical role in Nigeria’s economy.
“For us at the sub-national level, this is a historic moment. Agriculture plays a pivotal role in our economic structure, and this agreement demonstrates a strong commitment from the highest levels of government,” he remarked.
Benue State Governor Hyacinth Alia also expressed enthusiasm, highlighting the state’s position as the nation’s food basket.
“Benue State does not only hold the basket but the food and its surpluses for the nation,” he assured.
Minister of Foreign Affairs, Ambassador Yusuf Tuggar, described the agreement as a prime example of South-South cooperation between Nigeria and Brazil.
He emphasised the potential benefits, particularly considering Brazil’s transformation of barren savannahs into highly productive agricultural hubs.
Source: Nairametrics
