By Peace Erewunmi

The Bank of Industry (BOI) has announced that 70 per cent of an €85 million financing facility provided by the European Investment Bank (EIB) will be directed towards developing Nigeria’s cocoa and dairy value chains as part of efforts to boost local processing, industrialisation and agricultural value addition.

The announcement was made by the Managing Director and Chief Executive Officer of BOI, Dr. Olasupo Olusi, during the Africa Cocoa Summit in Abuja. He explained that approximately €60 million of the facility would be invested in the cocoa and dairy sectors to support processors, cooperatives and micro, small and medium-sized enterprises (MSMEs) engaged in value addition.

Olusi said the intervention is aimed at reducing Nigeria’s dependence on exporting raw agricultural commodities by encouraging local processing and manufacturing. He stressed that greater value addition would create jobs, increase export earnings and strengthen the country’s industrial base.

Beyond providing financing, BOI said it would offer technical assistance to beneficiaries to help them meet international quality and environmental standards, including compliance with the European Union Deforestation Regulation (EUDR). The support is expected to improve access to European and other international markets for Nigerian agricultural products.

The financing package forms part of the European Union’s Global Gateway initiative and is expected to support the Federal Government’s drive to expand local agro-processing, strengthen food security and promote sustainable economic growth through increased investment in agriculture and manufacturing.