The Benue State Government has approved an investment agreement estimated at N378 billion for the development of the National Food City Project at Ogyoma Akpa in Otukpo Local Government Area of the state.
The project was approved during a State Executive Council meeting chaired by Governor Hyacinth Alia at the Government House in Makurdi. The investment is expected to create more than 15,000 direct employment opportunities while supporting the state’s efforts to expand agricultural production, processing and value addition.
The Commissioner for Information and Orientation, Chief Solomon Iorpev, disclosed the decision on Wednesday while briefing journalists on the outcome of the council meeting.
Iorpev described the National Food City as a major private-sector agricultural investment that would occupy more than 30,000 hectares of land in the state.
Project to Combine Agriculture and Processing
According to the commissioner, the National Food City is designed as an integrated agricultural and processing hub rather than a project focused solely on the production of raw farm commodities.
The development will bring agricultural production and processing activities together, with farm produce expected to be transformed into finished products for consumption within Nigeria and for export to other markets.
The government said the approach is intended to strengthen the value chain around agriculture by ensuring that crops produced in Benue can undergo processing before reaching consumers.
Iorpev explained that the project would help shift the state away from relying predominantly on the production and sale of raw agricultural commodities.
By encouraging processing and value addition, the investment is expected to create a broader agricultural economy around production, manufacturing and the eventual distribution of finished products.
40,000 Farmers Expected to Participate
The project is also expected to involve a large number of farmers across its agricultural supply chain.
Iorpev said about 40,000 farmers are expected to participate by supplying commodities required for the operation of the facility.
Among the crops identified for the project are rice, cassava and maize, while livestock feed will also be supplied to support activities connected with the facility.
The participation of thousands of farmers is expected to provide the project with an agricultural supply base while creating a direct link between primary producers and the processing activities planned under the National Food City development.
The model is intended to connect agricultural production with industrial processing, allowing farm commodities to move into a structured value-addition system rather than remaining primarily in their raw form.
Investment Linked to Benue’s Business Drive
The state government presented the approval as part of the administration’s broader effort to make Benue more attractive to investors.
Iorpev linked the investment to policies being pursued by the Alia administration to improve the state’s business environment and encourage both domestic and international investment.
He said the administration’s approach includes emphasis on ease of doing business and due diligence as part of efforts to attract major investments into the state.
The N378 billion agreement therefore represents not only an agricultural development initiative but also a significant private-sector investment under the state government’s broader economic strategy.
The scale of the project, covering more than 30,000 hectares and involving an estimated 40,000 farmers, positions the National Food City as a major development focused on connecting agricultural production with processing and commercial activity.
25-Year Agreement
The investment agreement approved by the State Executive Council is expected to remain in force for 25 years.
Iorpev disclosed that ownership of the facility would be transferred to the Benue State Government at the end of the agreement period.
The arrangement establishes a long-term framework for the development and operation of the National Food City before the facility eventually becomes the property of the state government.
For the Alia administration, the project is expected to contribute to Benue’s agricultural economy by supporting production, processing, employment and investment.
The government also expects the initiative to strengthen the state’s position in agricultural value addition by creating infrastructure through which commodities produced by farmers can be converted into finished products.
Focus on Food Production and Value Addition
The approval comes with an emphasis on strengthening Benue’s role in food production while expanding activities beyond primary agriculture.
With rice, cassava and maize among the commodities expected to be supplied by participating farmers, the project is designed to build a connection between agricultural producers and the processing facility.
The government said finished products from the integrated hub would serve the Nigerian market while also being prepared for export.
The expected employment impact is another major component of the investment, with more than 15,000 direct jobs projected from the project.
At the same time, the anticipated participation of about 40,000 farmers provides the project with a wider agricultural base, linking large-scale investment to primary producers.
The State Executive Council’s approval now provides the framework for the investment agreement covering the proposed National Food City at Ogyoma Akpa in Otukpo.
The Benue Government has presented the N378 billion development as a major private-sector agricultural investment capable of strengthening food production and processing, expanding value addition and creating employment opportunities.
With the agreement set for 25 years before ownership of the facility is transferred to the state, the project is expected to form part of Benue’s long-term strategy of attracting investment and developing an agricultural economy that produces not only raw commodities but also finished products for Nigerian and export markets.
Benue Approves N378bn National Food City Project, Targets 15,000 Jobs
