An €85 million financing package from the European Investment Bank (EIB) Group and First City Monument Bank (FCMB) is set to channel fresh capital into Nigeria’s agricultural value chains, prioritising cocoa and dairy as lenders seek to support production, processing and value-chain development.
At least 70 percent of the financing is earmarked for the two sectors, where funding constraints and limited processing capacity have restricted the ability of farmers and agribusinesses to move beyond raw commodity sales into higher-value production.
Announced on the sidelines of the IMF and World Bank Annual Meetings in Bangkok, the facility is designed to expand access to long-term credit, strengthen local processing and support job creation across Nigeria’s agricultural economy.
The investment comes as pressure mounts on Nigeria to deepen domestic value addition, improve agricultural productivity and build more competitive supply chains. By financing businesses across production and processing, the initiative aims to help retain a greater share of agricultural income within the local economy.
The funding is expected to support the domestic processing of cocoa, improve liquidity for farmers and cooperatives, and strengthen traceability to meet international market requirements, including the European Union Deforestation Regulation (EUDR).
In dairy, the facility is intended to address market gaps, improve milk supply and support businesses across the value chain. The EIB said the transaction marks its first investment in the dairy sector outside the European Union.
Yemisi Edun, FCMB chief executive officer, said access to finance could determine whether agricultural producers remain suppliers of raw commodities or build businesses that process more output, increase earnings and create jobs.
She said long-term funding combined with technical support could help agribusinesses increase production, expand processing capacity and improve market access.
The allocation puts two distinct agricultural value chains at the centre of the financing initiative, with the potential gains tied to stronger links between producers, processors and markets.
In cocoa, improved access to capital and stronger traceability could help businesses deepen local processing while responding to tighter environmental and supply-chain requirements in export markets.
In dairy, investment is intended to support enterprises across the value chain and help address constraints affecting milk supply. The EIB’s entry into the segment outside Europe signals a new area of investment focus for the institution.
Ambroise Fayolle, EIB vice-president, said the partnership would help businesses become more competitive while meeting international environmental and social standards. He said the initiative could support employment, public health and economic development, while advancing the European Union’s Global Gateway strategy in Africa.
Nadia Calviño, president of the EIB Group, described agricultural value chains as important drivers of food security and economic growth across Africa, adding that the projects could also create opportunities for European businesses.
Jozef Síkela, European commissioner, stressed the need for Nigeria to create and retain more value locally.
Beyond financing, EIB Global will provide technical assistance to help FCMB develop a climate action strategy and strengthen environmental and social risk management in agricultural lending.
The support is intended to complement the credit facility by helping the bank assess and manage risks associated with financing agricultural businesses.
The initiative aligns with Nigeria’s development priorities and the European Union’s focus on sustainable food systems, climate-smart agriculture and food autonomy. It also forms part of the Team Europe Initiative on Green Economy.
The EIB Group said it had invested €2.3 billion in Nigeria since 1978, supporting sectors including transport, climate adaptation, innovation, digitalisation, agribusiness logistics and small and medium-sized enterprise finance.
The new facility adds to that engagement, but its economic impact is expected to depend on implementation, borrower uptake and the commercial viability of the projects financed. Details on lending terms, disbursement schedules and the expected number of beneficiaries were not provided in the announcement.
