FG confirms Saudi Arabia’s further $1.2 billion funding in Nigeria’s livestock sector 

The Federal Authorities has confirmed Saudi Arabia’s SALIC Worldwide Funding Firm’s acquisition of a 35.43% stake in Olam Agri Holdings for a considerable $1.24 billion, marking a big increase to Nigeria’s agricultural and livestock sector.

Minister of Finance Wale Edun made this announcement following a gathering with President Bola Tinubu in Lagos, emphasizing the administration’s dedication to fostering a secure macroeconomic setting that pulls high-value overseas investments.

“You all know and all of us heard that Saudi Arabia, the Saudi Agriculture and Livestock Funding Firm, had simply across the twenty third of December elevated its funding in Olam by a $1.2 billion further funding,” Edun said. “It’s that sort of transaction that Mr. President has taken the steps of stabilizing the Nigerian macro-economic setting 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 within the agricultural unit. The transaction, initially introduced in March 2022, solidifies Olam Agri’s place as a key participant in international agriculture whereas opening up new alternatives for Nigeria’s livestock business.

As a part of the settlement, Olam Agri and SALIC have established a Strategic Provide & Cooperation Settlement. This partnership goals to broaden Olam’s footprint within the Center Japanese markets whereas leveraging SALIC’s experience in livestock and agriculture to strengthen Nigeria’s agricultural exports.

Trade specialists have hailed the transaction as a milestone for Nigeria’s agricultural sector, noting its potential to boost meals safety, drive overseas change earnings, and create employment alternatives. The strategic partnership is anticipated to foster expertise switch, enhance farming strategies, and introduce revolutionary options to Nigeria’s livestock and broader agricultural worth chains.

Backstory 

Final week, Edun led a delegation to the Kingdom of Saudi Arabia on behalf of President Bola Tinubu and the Presidential Financial Coordination Council to strengthen the financial partnership, specializing in enhancing export credit score, insurance coverage frameworks, and market entry between the 2 nations.

• Throughout the go to, the delegation engaged in high-level discussions with Saudi EXIM Bank, specializing in creating export credit score and insurance coverage frameworks, and increasing market entry between the 2 nations.
• In response to a press release issued by the delegation, the Saudi EXIM Bank expressed curiosity in deepening relationships with Nigerian establishments and collaborating in future transactions involving Saudi authorities entities.

“Moreover, the delegation held strategic talks with the Saudi Growth Fund to discover potential areas of collaboration aimed toward boosting infrastructure and financial growth in Nigeria. The delegation additionally met with the Saudi Agricultural and Livestock Funding Firm (SALIC) to advance ongoing conversations about their investments in Nigeria,” the assertion famous.