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Home News ESG

Katsina agribusiness investment boosts processing and out‑grower scheme

Staff Writer by Staff Writer
12/30/2025
in ESG, Finance & Markets, News
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Key Takeaways:

  • Katsina State launches a pilot agro‑allied processing factory with an integrated out‑grower scheme under the FRILIA framework.
  • Initiative aims to create jobs, transfer skills and link smallholders to structured markets with a Grievance Redress Mechanism.
  • Private investors including TORQ Agro Allied and Al‑Hikima commit significant funds for poultry, soybean processing and fertiliser production.
  • State-established steering and technical committees and capacity building with traditional leaders to ensure responsible, inclusive land‑intensive investment.


The Katsina State Government has announced a pilot agricultural investment to establish an agro‑allied processing factory with an integrated out‑grower scheme in Tashar Bala village, Batagarawa Local Government Area. The project, launched under the Framework for Responsible and Inclusive Land‑Intensive Agricultural Investment (FRILIA), aims to draw smallholder farmers into organised markets while encouraging private sector participation.

Katsina agribusiness investment to create jobs and boost markets

Officials from the Katsina State Investment Promotion Agency (KIPA) said the pilot will generate employment, improve market access for local producers and facilitate skills and technology transfer. Ibrahim Tukur Jikamshi, Director‑General of KIPA, told journalists the state has constituted FRILIA steering and technical committees to guide implementation and ensure smooth operations.

The project follows an executive order adopting the FRILIA framework in line with international best practices on responsible land governance, community inclusion and investor protection. As part of the package, the state has run capacity‑building workshops for stakeholders, including traditional leaders, to strengthen institutional readiness for land‑intensive agricultural investment.

To ensure transparency and community confidence, the state has also established a Grievance Redress Mechanism with clear terms of reference. The mechanism is designed to address community concerns promptly and maintain accountability across the value chain.

Private investors have already signalled major commitments. TORQ Agro Allied disclosed a N3.5 billion investment for an ultra‑modern poultry farm with hatchery facilities, which is under construction. The company has additionally committed $11 million to establish a soybeans aggregation, collection and processing centre supported by an organised out‑grower sourcing system aligned with FRILIA principles.

Al‑Hikima Fertilizer and Chemicals Nigeria Limited is investing an initial N1 billion in fertiliser and agro‑chemical production, supply and seed multiplication at the project site, with plans to scale that investment to N5 billion in subsequent years. KIPA expects these investments to improve input availability, raise agricultural productivity and deepen value‑chain development across the state.

Jikamshi said the pilot project is intended as a scalable model for sustainable agricultural investments across Katsina. By integrating local producers into a structured out‑grower arrangement, the state hopes to move many smallholders from subsistence farming into remunerative markets while protecting community land rights and promoting inclusive growth.

Beyond farmgate benefits, the processing facility is expected to stimulate ancillary industries such as logistics, input supply and agro‑service provision. Observers note that such investments can strengthen rural livelihoods and support wider regional economic objectives by creating steady demand for farm produce and encouraging private investment in rural areas.

The Katsina initiative demonstrates a practical application of the FRILIA framework at state level, combining investor incentives with safeguards for communities and land governance. With established governance structures, investor commitments and capacity building underway, the pilot sets out to deliver a measured increase in employment and productivity while providing a model that could be replicated elsewhere in the state.

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