BOI unveils €85m facility to boost cocoa processing, value addition

The Bank of Industry (BOI) has unveiled an €85 million long-term financing facility to expand Nigeria’s cocoa processing capacity, reduce the country’s reliance on raw bean exports and accelerate value addition across the cocoa value chain.

The Managing Director and Chief Executive Officer of BOI, Dr Olasupo Olusi, announced the initiative on Tuesday at the Cocoa Value Addition Summit 2026 in Abuja, where he said the bank was repositioning its financing strategy to support industrial processing rather than the export of unprocessed agricultural commodities.

Speaking on the theme, “From Bean to Brand,” Olusi said the initiative reflects BOI’s commitment to unlocking greater economic value from Nigeria’s agricultural sector through local manufacturing and processing.

The financing facility is being implemented through a partnership between the European Investment Bank (EIB) and the Bank of Industry, with funding support from the European Union under its Global Gateway initiative.

According to Olusi, cocoa remains one of the bank’s priority value chains because of its importance to rural livelihoods and its potential to generate jobs, foreign exchange and industrial growth.

“We are particularly focused on cocoa value chains, which provide livelihoods for thousands of Nigerians,” he said.

He explained that the facility would support increased productivity, local processing and stronger market linkages to improve the incomes of cocoa farmers and processors.

“Through this initiative, we aim to enhance productivity, value addition and market linkages that will directly improve the incomes of farmers and processors,” he added.

Olusi disclosed that about 70 per cent of the €85 million financing package would be directed to the cocoa and dairy sectors, which the bank considers strategic industries with significant potential to create employment and conserve foreign exchange.

He noted that Nigeria continues to lose substantial economic value by exporting raw cocoa beans instead of processing them into higher-value products such as chocolate, cocoa butter and cocoa powder.

To address the challenge, BOI said it would complement financing with technical assistance to enable processors to meet international quality, sustainability and climate standards, including compliance with the European Union Deforestation Regulation (EUDR).

The bank also plans to establish dedicated financing windows for smallholder farmers organised into cooperatives, offering concessionary loans to improve access to affordable credit.

Olusi said BOI’s long-term objective is to encourage the establishment of cocoa processing factories within producing communities to retain jobs, tax revenues and greater economic value within the country.

According to him, processing cocoa locally could generate earnings of up to $30,000 per tonne from finished cocoa products, compared with approximately $9,000 per tonne earned from exporting raw cocoa beans.

Also speaking, the Permanent Secretary, Federal Ministry of Industry, Trade and Investment, Dr Chris Isokpunwu, represented by the ministry’s Director of Industrial Development, Mohammed Bala, said more than 80 per cent of Nigeria’s cocoa output is still exported in raw form despite the country’s considerable processing potential.

He noted that expanding domestic processing would boost export earnings, create employment opportunities and stimulate downstream industries, including confectionery, cosmetics and pharmaceuticals.

The financing initiative comes as Nigeria’s cocoa industry seeks to recover from heightened price volatility in the global market.

After reaching record highs of nearly $11,000 per metric tonne in 2025, international cocoa prices fell sharply to about $4,200 per tonne by early 2026, significantly reducing farmers’ incomes and exposing the risks associated with dependence on raw commodity exports.

Industry stakeholders believe that expanding local processing and manufacturing will help cushion producers against future global price fluctuations while increasing Nigeria’s export earnings, industrial capacity and participation in the global cocoa value chain.