EIB, FCMB commit €85m to agricultural processing, dairy value

Nigerian agribusinesses are set to receive €85 million in financing from the European Investment Bank Group’s international development arm, Nigerian agribusinesses are set to receive €85 million in financing from the European Investment Bank Group’s international development arm, and First City Monument Bank (FCMB), in a move aimed at expanding agricultural processing, strengthening exports and improving access to long-term capital for farmers and businesses.

At least 70 per cent of the facility will be directed towards cocoa and dairy value chains, targeting two sectors with significant potential to generate income, create jobs and deepen Nigeria’s agricultural value addition.

The financing was announced at the annual meetings of the International Monetary Fund and the World Bank Group in Bangkok, Thailand, in the presence of EIB Group President Nadia Calviño, Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele, and FCMB Chief Executive Officer Yemisi Edun.

The facility is expected to support companies across agricultural value chains, including farmers, cooperatives, processors and other businesses requiring capital to expand production, improve processing capacity and access new markets.

For Nigeria, where agricultural producers often struggle to secure affordable long-term financing, the partnership could help close funding gaps that limit productivity and prevent local businesses from capturing more value from their output.

In the cocoa sector, the funding will support industrial processing, provide liquidity to farmers and cooperatives, and improve product traceability. These interventions are particularly important as exporters face increasingly demanding environmental and supply-chain requirements in international markets.

The programme will support compliance with the European Union Deforestation Regulation, helping Nigerian cocoa businesses meet export-market requirements while improving traceability and supporting biodiversity conservation.

In the dairy sector, the financing is designed to address funding gaps and strengthen local supply chains. EIB Global said the operation represents its first investment covering the dairy sector outside the European Union, while also supporting increased milk supply for European businesses operating in Nigeria.

FCMB Chief Executive Officer, Yemisi Edun, said access to finance could determine whether farmers and agribusinesses remain focused on selling raw produce or develop businesses capable of processing more, generating higher earnings and creating additional jobs.

She said the partnership would provide long-term funding to help businesses increase production, expand processing capacity and reach new markets, with technical assistance complementing the credit facility.

EIB Global President Nadia Calviño said agricultural value chains were important drivers of food security and economic growth, while the financing would also create commercial opportunities for European businesses operating in Nigeria.

The package includes technical assistance to strengthen FCMB’s climate strategy and improve the Nigerian agriculture sector’s capacity to manage environmental and social risks.

The investment comes as Nigeria seeks to diversify its export base and retain more value from agricultural commodities. Expanding domestic processing can increase export earnings, create industrial employment and reduce the loss of potential income associated with exporting unprocessed products.

The agreement also highlights the growing role of development finance institutions in providing capital and technical support to businesses that may struggle to obtain suitable long-term funding through conventional commercial lending alone.

For the Nigerian economy, the impact will ultimately depend on how effectively the €85 million translates into higher farm output, stronger local processing, better access to export markets and improved incomes for farmers and other businesses across the cocoa and dairy value chains.