Nigeria’s cocoa and dairy businesses are set to receive fresh financing under an €85 million agreement between the European Investment Bank Group’s development arm, EIB Global, and First City Monument Bank (FCMB), as the partners seek to expand production and strengthen local processing.
At least 70 per cent of the funding will go to businesses across the two value chains, with the investment expected to help farmers, cooperatives and agribusinesses scale up operations, access new markets and create jobs. The agreement was announced at the IMF and World Bank Group Annual Meetings in Bangkok, Thailand.
In cocoa, the funding will support domestic processing, improve access to finance for farmers and cooperatives, and strengthen traceability from farms to markets. It will also help Nigerian exporters meet European Union deforestation requirements, an important consideration for businesses seeking to maintain access to the European market.
The dairy component will target financing gaps affecting domestic milk production and supply to businesses. The investment also represents EIB Global’s first financing operation in the dairy sector outside the European Union.
EIB Group President Nadia Calviño said investment in African agricultural value chains could advance food security and economic growth while opening up business opportunities for European companies.
However, EIB Vice-President Ambroise Fayolle said the partnership would support employment and livelihoods while helping agribusinesses meet environmental and social standards under the EU’s Global Gateway programme.
European Commissioner for International Partnerships Jozef Síkela said expanding local processing would allow Nigeria to retain more value from its agricultural produce. FCMB Chief Executive Officer Yemisi Edun similarly stressed the importance of long-term financing in helping agricultural businesses transition from selling raw commodities to processing higher-value products.
Beyond the financing, EIB Global will provide technical assistance to strengthen FCMB’s climate action strategy and improve the agricultural sector’s capacity to manage environmental and social risks.
EIB Global said its investments in Nigeria had reached €2.3 billion since the European Investment Bank began operating in the country in 1978, covering sectors including transport, climate adaptation, digitalisation, agricultural logistics and small and medium-sized businesses.
