Nigeria’s cocoa farmers and dairy businesses are set to gain access to €85 million ($95 million) in financing from the European Investment Bank (EIB) and First City Monument Bank (FCMB), as investors push to expand agricultural processing and reduce the sector’s dependence on raw commodity sales.

At least 70% of the funding will go to cocoa and dairy value chains, directing most of the financing towards two industries with significant potential to increase local production, create jobs and generate more income for Nigerian farmers and agribusinesses.

The deal also marks EIB Global’s first investment in the dairy sector outside the European Union. Beyond financing Nigerian businesses, the partnership aims to strengthen supply chains, improve environmental compliance and create opportunities for European companies seeking to expand their agricultural operations in Nigeria.

Cocoa and dairy businesses get funding boost

The financing will support private-sector companies across Nigeria’s agricultural value chains, with an emphasis on expanding processing capacity and helping businesses reach new markets.

For cocoa producers, the investment is expected to strengthen industrial processing throughout the value chain, provide liquidity to farmers and cooperatives, and improve product traceability. These measures could help Nigerian businesses retain more value locally instead of relying predominantly on exports of raw agricultural commodities.

The dairy component will address financing gaps that constrain the sector’s development. Increased domestic milk supply could also benefit European businesses operating in Nigeria that require reliable access to milk for their operations.

The initiative is aligned with Nigeria’s development objectives for sustainable agriculture and economic inclusion, alongside environmental and social standards.

EU standards shape investment priorities

The cocoa financing will support compliance with the European Union Regulation on Deforestation (EUDR), which imposes requirements on relevant commodities entering the EU market.

Better traceability and responsible production practices are intended to support market access, biodiversity conservation and rural development.

EIB Global is also providing technical assistance to help FCMB strengthen its climate action strategy and improve the Nigerian agricultural sector’s capacity to manage environmental and social risks.

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

EIB Group President Nadia Calviño said agricultural value chains are important drivers of food security and economic growth in Africa, while also creating business opportunities for European companies.

European Commissioner for International Partnerships Jozef Síkela said the investment would help Nigerian businesses expand local processing, retain more economic value domestically and create employment.

FCMB Chief Executive Officer Yemisi Edun said the long-term funding would help cocoa and dairy businesses increase production, expand processing capacity and reach new markets, with the aim of strengthening rural livelihoods and building a more resilient agricultural sector.

EIB expands its Nigerian investment footprint

The financing adds to the European Investment Bank Group’s wider involvement in Nigeria, where it has invested €2.3 billion($2.6 billion) since beginning operations in the country in 1978.

Previous investments have supported sustainable urban transport, climate adaptation, innovation, digitalisation, agribusiness logistics and financing for small and medium-sized enterprises and mid-sized companies.

The new partnership brings that investment focus further into agricultural production and processing, linking access to finance with environmental compliance and stronger domestic value chains.

For Nigeria, the central opportunity is to help farmers and agribusinesses move beyond selling raw produce towards processing more commodities locally, creating jobs and capturing a greater share of the value generated by the country’s agricultural resources.