EIB Global, the EIB Group's development arm, and Nigeria's First City Monument Bank (FCMB) announced €85 million in agricultural financing, with at least 70% intended for cocoa and dairy supply chains.
The plan targets private businesses across Nigerian agriculture. The Oct. 14 announcement came during annual meetings in Bangkok of the International Monetary Fund and World Bank Group. The EIB did not say how the financing would be divided between cocoa and dairy.
For cocoa, the planned financing would give farmers and cooperatives access to funds, expand industrial processing and improve the tracking of products through supply chains. The EIB said it aims for the cocoa investments to comply with EU deforestation rules.
The dairy portion is intended to address gaps in Nigeria's market and help EU businesses operating there that need more milk supply. The EIB said this would be EIB Global's first dairy-sector investment outside the European Union.
EIB Global is also providing technical assistance for FCMB's climate strategy and for managing environmental and social risks in Nigerian agriculture. FCMB CEO Yemisi Edun said longer-term financing could help cocoa and dairy businesses raise output, increase processing capacity and enter new markets. European Commissioner for International Partnerships Jozef Síkela said the initiative aims to keep more of the value created by agriculture in Nigeria.
The European Commission identifies cocoa and dairy development, agribusiness finance and climate-smart agriculture as priorities in its work with Nigeria. The EIB said the investment contributes to the Team Europe Initiative on Green Economy, which supports rural access to agricultural markets.
The EIB Group said it has invested €2.3 billion in Nigeria since 1978. Its announcement gave no borrower eligibility rules, interest rates, repayment periods or schedule for releasing the funds.
