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Home Commodities

$900m China poultry investment stirs debate over local industry survival

by Onome Amuge
March 29, 2026
in Commodities
Forex crunch,power bills block price relief for poultry feed

Poultry industry stakeholders in Nigeria have raised concerns over a proposed $900 million investment deal between the federal government and China, warning that the partnership could inadvertently undermine domestic poultry production if not carefully structured.

The planned collaboration, reportedly aimed at establishing a large-scale poultry project capable of producing up to six million eggs daily, is part of the government’s strategy to address Nigeria’s protein shortfall and boost food security. Yet, members of the Poultry Association of Nigeria (PAN) caution that the initiative, while well-intentioned, risks creating unfair competition for local producers.

Speaking with the News Agency of Nigeria in Lagos recently, Foluso Adams, PAN vice president and chairman of the Aiyedoto Poultry Farmers Settlement, highlighted the potential consequences for homegrown operations. “It will be better for the government to develop local poultry production to enable farmers to stay employed. Empowering our local poultry industry will give us the export opportunity for neighbouring West African countries or even across Africa to depend on our production,” Adams said.

PAN officials emphasised that strengthening indigenous production capacity should take precedence over introducing large-scale foreign-backed competition into a sector still navigating infrastructural and financial constraints.

Godwin Egbebe, PAN national publicity secretary, added that the proposed deal could have unintended ramifications not just for producers but also for consumers. “Before the government goes into this poultry partnership with China, they should also consider the health and safety of Nigerians,” he warned, noting that weak consumer purchasing power, rather than limited production capacity, remains the sector’s most pressing challenge.

The industry’s response underscores a growing tension between foreign investment and domestic capacity-building in Nigeria’s agricultural sector. While international partnerships promise capital inflows, technology transfer, and potential efficiency gains, stakeholders argue that without strategic safeguards, local farmers risk being marginalized, with adverse effects on employment, market pricing, and long-term industry resilience.

Economic analysts note that large-scale projects of this magnitude can reshape domestic supply dynamics, potentially reducing margins for small and medium poultry operations. They stress that government policy must balance investment attraction with the protection of local stakeholders, particularly in a sector critical to nutrition and rural livelihoods.

The federal government has yet to release a detailed framework for the China-backed poultry project, including operational structures, local sourcing mandates, and mechanisms to integrate indigenous farmers into the value chain. Industry experts urge that such measures be clearly defined before implementation to ensure that Nigeria’s poultry sector benefits holistically from the investment.

Onome Amuge

Onome Amuge serves as online editor of Business A.M, bringing over a decade of journalism experience as a content writer and business news reporter specialising in analytical and engaging reporting. You can reach him via Facebook ,X and  LinkedIn

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