Nigeria and Brazil have sealed a landmark $1 billion cooperation agreement aimed at modernizing Nigeria’s agricultural sector, bolstering energy initiatives, and enhancing food security and defense capabilities.

The deal, signed in Abuja on June 24 during Brazilian Vice President Geraldo Alckmin’s visit, marks a significant milestone in South–South collaboration. Nigerian Vice President Kashim Shettima emphasized that the pact will “deploy over $1 billion to deliver mechanised farming equipment, training, and service centres across Nigeria,” moving the country “from subsistence to scale in agriculture.”

The agreement includes the deployment of mechanized farming equipment, such as tractors and spare parts, supported by training programs and service centers across Nigeria. Collaborative efforts in energy will target gas production, refining, and renewable energy investment. A defense cooperation memorandum of understanding will also strengthen ties in military training, intelligence exchange, and technology.

Nigeria aims to transform its agriculture sector by integrating smallholder farmers into efficient value chains and boosting food security through mechanization. Brazil lends deep expertise in tropical agriculture and mechanization—a proven model for success. As part of President Tinubu’s vision for a $1 trillion economy by 2030, the pact also supports energy reforms and public finance stability.

The agreement is expected to generate millions of jobs across the agricultural value chain by 2025–26, prioritizing youth and women inclusion. It will reduce dependence on food imports, support rural development, and attract foreign investment into strategically vital sectors.

Implementation of the agreement in the second half of 2025 will involve close coordination between relevant ministries, private-sector partners, and Brazilian technical teams. Local assembly of mechanized equipment is expected to strengthen Nigeria’s agri-manufacturing capacity and supply chain resilience.