The Federal Government has confirmed Saudi Arabia’s SALIC International Investment Company’s acquisition of a 35.43% stake in Olam Agri Holdings for a substantial $1.24 billion, marking a significant boost to Nigeria’s agricultural and livestock sector.
Minister of Finance Wale Edun made this announcement following a meeting with President Bola Tinubu in Lagos, emphasizing the administration’s commitment to fostering a stable macroeconomic environment that attracts high-value foreign investments.
“You all know and we all heard that Saudi Arabia, the Saudi Agriculture and Livestock Investment Company, had just around the 23rd of December increased its investment in Olam by a $1.2 billion additional investment,” Edun stated. “It’s that type of transaction that Mr. President has taken the steps of stabilizing the Nigerian macro-economic environment 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 in the agricultural unit. The transaction, initially announced in March 2022, solidifies Olam Agri’s position as a key player in global agriculture while opening up new opportunities for Nigeria’s livestock industry.
As part of the agreement, Olam Agri and SALIC have established a Strategic Supply & Cooperation Agreement. This partnership aims to expand Olam’s footprint in the Middle Eastern markets while leveraging SALIC’s expertise in livestock and agriculture to strengthen Nigeria’s agricultural exports.
Industry experts have hailed the transaction as a milestone for Nigeria’s agricultural sector, noting its potential to enhance food security, drive foreign exchange earnings, and create employment opportunities. The strategic partnership is expected to foster technology transfer, improve farming techniques, and introduce innovative solutions to Nigeria’s livestock and broader agricultural value chains.
Backstory
Last week, Edun led a delegation to the Kingdom of Saudi Arabia on behalf of President Bola Tinubu and the Presidential Economic Coordination Council to strengthen the economic partnership, focusing on enhancing export credit, insurance frameworks, and market access between the two nations.
- During the visit, the delegation engaged in high-level discussions with Saudi EXIM Bank, focusing on developing export credit and insurance frameworks, and expanding market access between the two nations.
- According to a statement issued by the delegation, the Saudi EXIM Bank expressed interest in deepening relationships with Nigerian institutions and participating in future transactions involving Saudi government entities.
“Additionally, the delegation held strategic talks with the Saudi Development Fund to explore potential areas of collaboration aimed at boosting infrastructure and economic development in Nigeria. The delegation also met with the Saudi Agricultural and Livestock Investment Company (SALIC) to advance ongoing conversations about their investments in Nigeria,” the statement noted.
