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The European Investment Bank Group’s international development arm, EIB Global, and First City Monument Bank (FCMB) have secured an €85 million financing deal to support Nigerian businesses in the cocoa and dairy sectors.
At least 70 per cent of the funding will be channelled to businesses across the two agricultural value chains to boost production, expand local processing and create jobs.
The agreement was announced at the weekend at the just-concluded Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group in Bangkok, Thailand.
The event was attended by EIB Group President Nadia Calviño; Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele; EIB Vice-President Ambroise Fayolle; European Commissioner for International Partnerships, Jozef Síkela and FCMB Chief Executive Officer, Yemisi Edun.
The financing is expected to help farmers, cooperatives and agribusinesses access long-term funds to increase production, improve processing capacity and reach new markets.
For the cocoa sector, the investment will strengthen local processing, provide financial support to farmers and cooperatives, and improve the tracking of cocoa products from farms to markets.
The initiative will also help Nigerian cocoa businesses comply with the European Union’s rules on deforestation, which seek to prevent products linked to forest destruction from entering the EU market.
In the dairy sector, the funding is expected to address gaps in financing, increase milk production and improve supplies to businesses operating in Nigeria.
The deal marks EIB Global’s first investment in the dairy sector outside the European Union.
Speaking on the partnership, EIB Group President Nadia Calviño said investments in agricultural value chains across Africa were important drivers of food security and economic growth.
She added that the projects would also create business opportunities for European companies operating in Nigeria.
EIB Vice-President Ambroise Fayolle said the financing would help Nigerian agribusinesses expand while meeting international environmental and social standards.
He said the investment would support employment, improve livelihoods and strengthen the economy, describing the initiative as part of the EU’s Global Gateway investment programme.
European Commissioner for International Partnerships Jozef Síkela said the deal would help Nigeria retain more value from its agricultural produce by supporting local processing and expanding businesses across the cocoa and dairy sectors.
According to him, creating more value locally would strengthen businesses, generate jobs and deepen economic ties between Nigeria and the European Union.
FCMB Chief Executive Officer Yemisi Edun said access to finance could help farmers and agricultural businesses move beyond selling raw produce to processing their products, earning more income and creating jobs.
She said the partnership would provide businesses with the long-term funding needed to increase production, expand processing and access new markets.
The financing will be complemented by technical assistance from EIB Global to strengthen FCMB’s climate action strategy and improve the Nigerian agricultural sector’s ability to manage environmental and social risks.
The project also supports Nigeria’s development objectives in sustainable agriculture and inclusive economic growth.
EIB Global said it had invested €2.3 billion in Nigeria since the European Investment Bank began operations in the country in 1978. Its investments have supported sectors including transport, climate adaptation, digitalisation, agricultural logistics and small and medium-sized businesses.
