The Niger State Government has signed a $2 billion Memorandum of Understanding (MoU) with the Turkish company Direkci Group for the off-taking of soya beans in the state. The agreement was signed at the Niger State Government House in Minna in the presence of Governor Mohammed Umaru Bago, officials of Direkci Group led by its MD/CEO Mr. Nurullah Mahmet, and other top government functionaries.
This 10-year partnership, costing $200 million per year, is expected to boost agriculture in the state, create job opportunities, and improve the economic status of local farmers. Governor Bago described the agreement as a game-changer and expressed gratitude to the Turkish government for their willingness to invest in Niger State.
“This collaboration is a game changer for Niger State, and we are confident it will significantly reduce unemployment and boost food security,” Governor Bago stated. He also mentioned that the state government is open to further partnerships with Turkey beyond agriculture.
Mr. Nurullah Mahmet, the Managing Director and CEO of Direkci Group, highlighted their long-standing presence in Nigeria, having been in the agricultural business for over 17 years. He praised the agricultural programs of Niger State and emphasised the mutual benefits of the partnership. He also assured that they are willing to invest $10 billion in agriculture over the next decade and will work with their government to ensure the security of their investments.
Chairman of Niger Foods, Sammy Adigun, disclosed that the Turkish firm will purchase 500,000 metric tonnes of soy beans annually for the next 10 years. The agreement will empower local farmers by providing them with seeds and fertilisers, ensuring a guaranteed market for their produce.
Adigun further revealed that the Turkish firm is also investing in a 100,000-hectare greenhouse project with a cold chain facility at the agro-processing zone, which will produce about 160,000 tonnes of fruits and vegetables annually, including tomatoes and peppers. Additionally, the group will establish a 2.5 million chicken production poultry facility, including egg and feed mills, in two phases.
The partnership will also establish 30,000 hectares of soy bean farms with irrigation systems in Adunu, Paikoro Local Government Area. Adigun announced that the group has already ordered the first chicken house for 500,000 chickens, which will be operational in six months, and 2,000 greenhouses are already being shipped. The group will also provide $50 million in direct support to farmers.
The agreement includes provisions for the company to provide security for their investments in areas prone to insecurity in the state.
Governor Bago emphasised that this partnership is a significant step towards achieving the state's agricultural goals and enhancing food security. He noted that the collaboration would not only benefit the local farmers but also contribute to the overall economic development of Niger State.
Mr. Nurullah Mahmet reiterated the commitment of Direkci Group to the success of this venture. He mentioned that the company has a robust plan to ensure the sustainability of the projects and the welfare of the local communities involved. He also highlighted the importance of providing security for their investments, especially in areas prone to insecurity.
The Chairman of Niger Foods, Sammy Adigun, provided further details on the various projects under the agreement. He mentioned that the 100,000-hectare greenhouse project would include advanced cold chain facilities to maintain the quality of the produce. The poultry facility, once completed, is expected to significantly boost the local poultry industry and create numerous job opportunities.
Adigun also pointed out that the provision of seeds, fertilisers, and a guaranteed market for the farmers' produce would empower the local farming community. He expressed confidence that the partnership would lead to a substantial increase in agricultural productivity and income for the farmers.
The agreement also includes a commitment from Direkci Group to invest in infrastructure development in the state. This includes the construction of roads, storage facilities, and other necessary infrastructure to support the agricultural projects.
Governor Bago concluded the event by thanking the Turkish government and Direkci Group for their trust and investment in Niger State. He assured them of the state government's full support and cooperation to ensure the success of the partnership.