Nigeria’s Cocoa and Dairy Businesses Get €85m Boost From EIB Global and FCMB

A new €85 million financing partnership between EIB Global and First City Monument Bank (FCMB) will support private companies across the country’s agricultural value chains, with at least 70% directed towards cocoa and dairy.

For Nigerian farmers and food businesses, access to funding can determine whether they sell raw produce or earn more by processing it locally. A new €85 million financing partnership between EIB Global and First City Monument Bank (FCMB) will support private companies across the country's agricultural value chains, with at least 70% directed towards cocoa and dairy.

The financing brings together investment and technical support to help businesses increase production, expand processing and reach new markets. EIB Global, the European Investment Bank Group's international development arm, is making its first investment covering the dairy sector outside the European Union, opening a new area of cooperation with Nigeria.

More Funding for Milk Production and Dairy Businesses

Nigeria's dairy sector needs investment to address gaps that limit milk supply and business growth. The financing will support agricultural businesses serving this market, including increased milk supplies needed by EU companies operating in Nigeria.

The operation connects Nigeria's priorities for sustainable agriculture and inclusion with opportunities for businesses to expand, subject to environmental and social standards that form part of the investment.

For farmers and processors, the availability of long-term funding offers room to make improvements that are difficult to finance from day-to-day income.

"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 FCMB Chief Executive Officer Yemisi Edun.

Edun said the partnership would help cocoa and dairy businesses increase production, build processing capacity and enter new markets, with technical support contributing to stronger rural livelihoods and a more resilient agricultural sector.

Helping Nigeria Earn More From Its Cocoa

Nigeria is one of the world's largest cocoa exporters, and the investment will support greater processing capacity across the value chain so that more of the crop's economic value can be retained in the country.

Funding channelled through FCMB will provide liquidity to cocoa farmers and cooperatives, strengthen industrial processing and improve product traceability. These measures connect the financial needs of producers with the requirements of businesses buying and processing their cocoa.

Compliance with the EU Regulation on Deforestation (EUDR) is part of the operation, alongside biodiversity conservation and efforts to reduce environmental harm. The cocoa investment supports inclusive rural development and reflects EU standards, the EIB Group's Climate Roadmap and the European Green Deal.

European Commissioner for International Partnerships Jozef Síkela linked the financing to the need for more local processing, explaining that Nigeria's agricultural potential can generate more jobs and stronger businesses when more value is created and retained domestically.

Technical Support to Make Agricultural Growth Sustainable

EIB Global will provide technical assistance alongside the credit line, supporting FCMB's climate action strategy and helping Nigeria's agriculture sector manage environmental and social risks.

The investment forms part of the EU's Global Gateway initiative and contributes to the Team Europe Initiative on Green Economy, which supports climate-smart agriculture, inclusive agribusiness, rural access and access to agricultural markets.

Its focus on sustainable food systems and strategic food autonomy also connects the EU's priorities with Nigeria's development plans.

EIB Vice-President Ambroise Fayolle said the partnership would help Nigerian agribusinesses become more competitive and meet international environmental and social standards, with benefits for employment, health and the wider economy.

"The EIB Group invests in agricultural value chains in Africa – main drivers of food security and economic growth," said EIB Group President Nadia Calviño, who also highlighted the business opportunities the projects create for EU companies in Nigeria.

Building on Decades of Investment in Nigeria

The financing was announced during the Annual Meetings of the International Monetary Fund and the World Bank Group in Bangkok. Those present included Calviño, Fayolle, Síkela, Edun and Nigeria's Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.

The EIB Group has invested €2.3 billion in Nigeria since beginning operations in the country in 1978. Its financing has supported sustainable urban transport, climate adaptation, innovation, digitalisation and agribusiness logistics, as well as small and medium-sized enterprises and mid-sized companies.

This latest partnership directs funding towards the farms, cooperatives and processors that supply food and support rural employment, giving cocoa and dairy businesses greater access to the capital needed to expand their operations and keep more economic activity within Nigeria.