Cocoa, Dairy Get 70% Of €85m European Bank, FCMB Funding

The European Investment Bank (EIB) Group and First City Monument Bank (FCMB) have unveiled €85 million in financing to support private-sector businesses across Nigeria’s agricultural value chains, with at least 70 per cent of the funds targeting cocoa and dairy production and processing.

The financing is expected to expand local processing capacity, improve access to long-term credit for farmers and agribusinesses, create jobs and strengthen Nigeria’s agricultural value chains.

The funding, provided through the EIB Group’s international development arm, EIB Global, was announced on the sidelines of the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group in Bangkok, Thailand.

The announcement was made in the presence of EIB Group President Nadia Calviño, 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 investment will address financing gaps in the cocoa and dairy sectors, enabling businesses to increase production, expand processing operations and meet international environmental and social standards.

For the dairy sector, the financing marks EIB Global’s first investment in the industry outside the European Union. It is designed to address gaps in Nigeria’s dairy market, improve milk supply and support businesses operating across the value chain.

In the cocoa sector, the facility will strengthen local processing capacity, provide liquidity to farmers and cooperatives, and improve product traceability, helping Nigerian producers capture more value from their output.

The investment will also support compliance with the European Union Regulation on Deforestation (EUDR), which seeks to prevent products linked to deforestation from entering the EU market. The initiative is expected to promote biodiversity conservation, reduce environmental damage and support inclusive rural development.

EIB Group president Nadia Calviño said agricultural value chains remained important drivers of food security and economic growth across Africa.

“The EIB Group invests in agricultural value chains in Africa – main drivers of food security and economic growth,” she said.

“These projects also open business opportunities for EU companies in Nigeria, building a truly a win-win partnership.”

EIB Vice-President Ambroise Fayolle said the partnership would help Nigerian agribusinesses grow while meeting international environmental and social standards.

“With this financial partnership with First City Monument Bank, EIB Global concretely supports Nigerian agribusinesses to grow competitively while meeting international environmental and social standards,” Fayolle said.

He added that the investment would have positive implications for employment, health and the economy, describing it as an example of the European Union’s Global Gateway initiative in Africa.

European Commissioner for International Partnerships Jozef Síkela said Nigeria needed to create and retain more value locally from its agricultural resources.

“Nigeria has enormous potential in agriculture,” Síkela said.

“To turn that potential into more jobs, stronger businesses and new economic opportunities, we need to ensure that more value is created and retained in Nigeria.”

He said the investment would enable businesses across the cocoa and dairy value chains to access the financing required to grow and expand local processing.

FCMB Chief Executive Officer Yemisi Edun said access to finance could help farmers and agribusinesses move beyond selling raw produce to building businesses that generate higher earnings and create more jobs.

“For farmers and agribusinesses, access to finance can make the difference between selling raw produce and building businesses that process more, earn more and create more jobs,” Edun said.

She said the partnership would provide long-term funding to increase production, expand processing capacity and improve access to new markets.

“By combining financing with technical support, we aim to strengthen rural livelihoods, promote sustainable growth and help build a more resilient agricultural sector,” she added.

Alongside the credit facility, EIB Global will provide technical assistance to support FCMB’s climate action strategy and strengthen the agricultural sector’s capacity to manage environmental and social risks.

The initiative aligns with Nigeria’s development priorities and the EU’s efforts to promote sustainable food systems, climate-smart agriculture and food autonomy. It also supports the Team Europe Initiative on Green Economy, which promotes inclusive agribusiness, rural development and improved access to agricultural markets.

The EIB Group said it had invested €2.3 billion in Nigeria since beginning operations in the country in 1978. The investments have supported projects in sustainable urban transport, climate adaptation, innovation, digitalisation, agribusiness logistics and financing for small and medium-sized enterprises.

The latest facility is expected to deepen Nigeria-EU economic cooperation while strengthening private-sector participation in agricultural development.