Nigeria’s cocoa industry has received a significant boost with a $40.5m investment from British International Investment, the UK’s development finance institution.
This was disclosed by the Head of Office and Coverage Director, BII, Benson Adenuga, on Tuesday at the signing ceremony between BII and Johnvents.
The investment in partnership with Johnvents Group aims to enhance cocoa production, increase global exports, and drive sustainability in Nigeria’s agricultural sector.
The investment will position Nigeria as a competitive player in the international cocoa market.
Underlining the UK’s commitment to Nigeria’s agricultural development, British Deputy High Commissioner in Lagos, Jonny Baxter, stated, “The UK is proud to back first-class sustainable investment that is creating jobs and mutually beneficial partnerships across Nigeria.
“Through this landmark agreement between the UK’s development finance institution, British International Investment, and Johnvents Group, we look forward to the further growth of Nigeria’s cocoa industry and increased export markets.”
Adenuga emphasised the investment’s significance for the country’s trade balance and global competitiveness.
“We are delighted to partner with Johnvents Group to address critical barriers to the growth of Nigeria’s cocoa industry with a $40.5m investment. Not only will this benefit local farmers, but it will also improve Nigeria’s trade balance and global competitiveness through increased exports.
“The investment underlines BII’s commitment to backing ambitious Black-owned and led domestic champions that provide innovative solutions to key bottlenecks in strategic sectors,” he stated.
As the world’s fourth-largest cocoa producer, Nigeria has immense potential, but its export capacity remains underutilised.
He said the BII funding will allow Johnvents Group to bridge this gap by increasing processing capacity and enhancing export capabilities.
The Group Managing Director of Johnvents Group, John Alamu, described the investment as a transformative step for the company and the industry.
“The investment into the Premium Cocoa Products Ile-Oluji facility, one of our cocoa processing subsidiaries, coupled with our partnership with BII, represents a significant step forward in achieving this goal.
“This investment will not only boost our processing capabilities but also empower thousands of farmers and contribute to the overall economic development of Nigeria,” he said.
Speaking at the event, the Executive Director of the Cocoa Research Institute of Nigeria, Dr Patrick Adebola, expressed optimism about the industry’s future.
“The cocoa industry will be positively affected by this development,” he stated.
Adebola highlighted the increasing global demand for cocoa and its financial benefits to farmers.
“Today, cocoa farmers are smiling to the bank. By this time last year, the price of cocoa was about $1,800. Today, we know what the price is. And I can tell you that most small-scale farmers producing this important commodity are smiling to the bank. They are really smiling to the bank,” he said.
“We can produce more without necessarily increasing our land area. The number of hectares we have is enough for Nigeria to produce 900,000 metric tonnes or even more,” he explained.
The Managing Director and Head of Africa at BII, Chris Chijiutomi, emphasised the importance of sustainability and local value addition.
“Agriculture accounts for a quarter of Nigeria’s GDP and employs over 70 per cent of its population. Supporting these farmers in implementing sustainable practices and ensuring fair wages is critical for continued operations and the production of quality crops,” he noted.
“Our partnership will not only benefit local farmers but also enhance Nigeria’s trade balance and global competitiveness,” Chijiutomi added.
