The European Investment Bank Group’s international development arm, EIB Global, and First City Monument Bank (FCMB) have announced €85 million in financing to support private-sector companies across agricultural value chains in Nigeria. At least 70 per cent of the financing will target cocoa and dairy value chains.

The announcement was made during the Annual Meetings of the International Monetary Fund and the World Bank Group in Bangkok in the presence of EIB Group president Nadia Calviño, finance minister Taiwo Oyedele, EIB vice-president Ambroise Fayolle, European commissioner for International Partnerships Jozef Síkela and FCMB chief executive officer, Yemisi Edun.

The operation is EIB Global’s first investment covering the dairy sector outside the European Union. It is fully aligned with Nigeria’s development objectives in sustainable agriculture and inclusion as well as environmental and social standards, according to a statement by the bank.

The EIB Global financing will address market gaps in the dairy sector, enabling the growth of EU businesses in Nigeria that require increased milk supply.

As one of the world’s largest cocoa exporters, Nigeria’s investments through FCMB will strengthen industrial processing capacity across the value chain, provide liquidity support to cocoa cooperatives and farmers, and improve product traceability.

Compliance with the EU Regulation on Deforestation (EUDR) will be ensured, fostering biodiversity conservation and reducing environmental externalities while supporting inclusive rural development in line with EU standards, the EIB Group’s Climate Roadmap and the European Green Deal.

Alongside the credit line, EIB Global is providing technical assistance to support FCMB’s climate action strategy and the Nigerian agriculture sector’s capacity to manage environmental and social risks.

“The EIB Group invests in agricultural value chains in Africa – main drivers of food security and economic growth,” Ms Calviño said. “These projects also open business opportunities for EU companies in Nigeria, building a truly a win-win partnership.”

Mr Fayoelle said, “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.

“Such investment is important for the country in terms of employment, health and the economy, with real impact on the local population. It is a concrete example of the EU Global Gateway initiative in which the EIB Group, as the EU bank, is a key actor and partner in Africa.”

Mr Sikela added that  Nigeria “has enormous potential in agriculture”.

“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. This Global Gateway investment with EIB Global and First City Monument Bank will help businesses across the cocoa and dairy value chains access the finance they need to grow and expand local processing,” Mr Sikela explained. “That is how we build stronger value chains and deepen the EU-Nigeria partnership for the benefit of both sides.”

“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,” said the FCMB CEO. “Through our partnership with EIB Global, businesses across Nigeria’s cocoa and dairy value chains will have access to the long-term funding needed to increase production, expand processing capacity and reach 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.”

The project aligns with the EU’s geopolitical priorities and Nigeria’s development plans by supporting sustainable food systems and strategic food autonomy, according to the statement, noting that the investment also contributes to the Team Europe Initiative (TEI) on Green Economy, which promotes climate-smart agriculture, inclusive agribusiness, rural access and access to agricultural markets.

Overall, the EIB Group has invested €2.3 billion in Nigeria since it began its activities in the country in 1978. The financing has supported impactful, transformative investments in crucial areas for Nigeria, such as sustainable urban transport, climate adaptation, innovation and digitalisation, agribusiness logistics, and small and medium enterprises and mid-caps.