Home » Nigeria Signs $33m Deal to Build 10,000 Climate-Smart Greenhouses

Nigeria Signs $33m Deal to Build 10,000 Climate-Smart Greenhouses

by Adenike Adeodun

KEY POINTS


  • Nigeria has signed a $33 million agreement to deploy 10,000 climate-smart greenhouses nationwide.

  • The project will begin with 1,000 greenhouse units in Kano State under a $3 million pilot programme.

  • The initiative will provide farmers with financing, modern farming technology and access to industrial buyers.


Nigeria has signed a $33 million public-private partnership agreement to establish 10,000 climate-smart greenhouse units across the country, in a move aimed at improving agricultural productivity, supporting farmers and strengthening food security.

The agreement was signed on the sidelines of the COP31 climate conference in Antalya, Turkey, by the Special Agro-Industrial Processing Zones (SAPZ) programme, the Bank of Agriculture (BoA) and Turkey-based agricultural technology and investment company, Direkçi Group.

The initiative will begin with a $3 million pilot project involving 1,000 greenhouse units in Kano State before expanding to other parts of the country.

The signing ceremony was witnessed by Nigeria’s Minister of Agriculture and Food Security, Abubakar Kyari; Turkey’s Minister of Agriculture and Forestry, Ibrahim Yumaklı; and former Turkish Minister of Agriculture and Rural Affairs, Mehdi Eker.

The first phase will involve the installation of 1,000 greenhouse units, each covering approximately 240 square metres.

Under the financing arrangement, Direkçi Group will provide $1.5 million in foreign direct investment, while the Bank of Agriculture will provide a matching $1.5 million credit facility for participating farmers.

Direkçi Group will be responsible for manufacturing and installing the greenhouse facilities. It will also provide technical training and support farmers in securing buyers for their produce, including tomato processing factories and other industrial buyers.

The company is expected to introduce modern agricultural technologies that will help farmers manage growing conditions and improve the consistency of crop production.

Following the Kano pilot, the programme is expected to expand to 10,000 greenhouse units nationwide, with an estimated total investment of $33 million.

Farmers to Receive Loans and Technical Support

The Bank of Agriculture will administer loans to participating farmers under a 36-month repayment arrangement.

The financing structure includes an initial four-month moratorium, giving farmers time to establish their crops and begin generating income before repayments commence.

SAPZ will provide land, basic infrastructure, seeds and seedlings for the initiative. It will also mobilise farmers and coordinate the programme’s expansion across the country.

Women and smallholder farmers have been identified as priority beneficiaries, with the partnership designed to improve their access to modern farming facilities, financing and commercial agricultural markets.

The arrangement is also expected to connect participating farmers with industrial buyers through off-take agreements. Under the proposed system, processors and other buyers will purchase produce based on agreed quality standards, prices and delivery conditions.

Greenhouses to Help Farmers Cope With Climate Change

The initiative comes as Nigerian agriculture faces increasing pressure from climate-related challenges, including flooding, drought, extreme temperatures and unpredictable rainfall.

These conditions have disrupted farming seasons, damaged crops and reduced farmers’ incomes, creating a growing need for production systems that can withstand changing weather patterns.

Greenhouses provide a controlled environment in which farmers can manage temperature, water supply and other conditions required for crop growth. The structures can also reduce crops’ exposure to extreme weather, pests and irregular rainfall.

The Nigerian project is expected to improve the quality and consistency of tomato and pepper production while introducing farmers to precision irrigation, climate control and modern crop management techniques.

Project Expected to Create Jobs and Strengthen Food Supply Chains

Beyond improving crop production, the partnership is expected to create employment opportunities across several areas of the agricultural value chain.

These include greenhouse construction, farming, transportation, food processing and marketing.

The proposed off-take arrangements are also expected to address market access challenges by providing farmers with more predictable buyers while helping food processors secure a reliable supply of agricultural produce.

The project follows a government-enabled, private-sector-led model, with public institutions providing infrastructure and support while private partners contribute investment, technology and market connections.

By connecting smallholder farmers to commercial agricultural value chains, the initiative is expected to support domestic food production and improve the resilience of Nigerian agriculture to climate-related disruptions.

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