Chinese $900 Million Poultry Deal Faces Setback in Nigeria as Farmers Push Back

Solomon Ekanem

28 March 2026 07:37 AM

Nigeria’s proposed $900 million poultry partnership with Chinese investors is encountering early resistance from local farmers, raising fresh concerns about how foreign-backed agricultural projects could reshape the country’s domestic industry.

Nigeria plans a $900 million poultry partnership with Chinese investors to establish six large-scale farms across the country.

Each farm is designed to produce up to one million eggs daily, significantly boosting national egg supply.

Officials promote the initiative as a means to modernize the poultry sector via technology transfer and increased production capacity.

Local farmers express concerns that the project could disrupt markets and marginalize smaller domestic producers.

The deal, which is part of a broader government strategy to boost food security, aims to establish six large-scale, integrated poultry farms across Nigeria’s geopolitical zones.

Each facility is projected to produce up to one million eggs daily, potentially delivering a combined output of six million eggs per day and significantly expanding national supply.

Officials have framed the initiative as a pathway to modernize Nigeria’s poultry sector through technology transfer, improved infrastructure, and industrial-scale production.

Under the arrangement, Nigeria is expected to fund initial pilot phases, while Chinese partners will provide the bulk of financing for full implementation.

Farmers warn of market disruption

Despite these ambitions, the proposal has sparked pushback from local producers, particularly members of the Poultry Association of Nigeria (PAN), who argue that the plan risks sidelining indigenous farmers.

Many in the industry fear that heavily financed, large-scale operations could dominate the market, making it difficult for smaller producers to compete.

The Food and Agriculture Organization of the United Nations (FAO) estimates Nigeria’s poultry industry is worth about $4.2 billion, making it one of the country’s major agricultural sectors after services. Chicken remains a key source of protein for a large share of Nigeria’s population.

Stakeholders also point out that Nigeria’s poultry challenges are deeply structural. Feed costs which have been driven largely by the price of maize and soy, account for the majority of production expenses, while weak consumer purchasing power continues to limit demand.

In this context, farmers argue that increasing supply without addressing cost pressures could worsen market imbalances rather than solve them.

Speaking, Lagos PAN Vice President and Chairman of Aiyedoto Poultry Farmers Settlement, Foluso Adams, urged the government to prioritize local producers to strengthen the sector and boost food security.

He warned that relying on foreign-backed projects could undermine domestic investors, stressing the need to empower Nigerian farmers instead.

“It will be better for the government to develop local poultry production to keep farmers employed… Empowering our poultry industry will open export opportunities and generate foreign exchange. Bringing them here will undermine our investors… If we don’t take time, the Nigerian poultry sector will become a toy business.”

There are growing calls for the government to shift focus toward strengthening local capacity, including investment in feed production, access to credit, and broader support for domestic producers. Some stakeholders have also urged authorities to ensure strict regulatory oversight and industry consultation before moving forward.

The debate highlights a broader tension in Nigeria’s economic policy: balancing the need for foreign investment and rapid agricultural expansion with the protection and sustainability of local industries.