European Investment Bank Funds Nigeria's Cocoa and Dairy Sectors with €60 Million
The Bank of Industry (BOI) has obtained a €60 million credit facility from the European Investment Bank (EIB) to enhance Nigeria's cocoa and dairy value chains. The announcement was made by Dr. Olasupo Olusi, Managing Director and CEO of BOI, during the Africa Cocoa Summit held in Abuja on July 14. The summit, organized by the Federal Ministry of Industry, Trade and Investment, focused on promoting local processing and chocolate manufacturing.
The €60 million forms part of a larger €85 million EIB-BOI financing package, supported by the European Union's Global Gateway initiative. Approximately 70% of this fund is allocated to Nigeria's cocoa and dairy sectors, which are crucial for job creation and industrialization.
Dr. Olusi emphasized the importance of local value addition rather than exporting raw cocoa beans. He stated, "The era of celebrating volumes of raw exports must end." BOI plans to prioritize financing for processors, cooperatives, and MSMEs involved in local processing.
Beyond financing, BOI will offer technical support to help beneficiaries meet international compliance standards and access European markets. This includes assistance with the European Union Deforestation Regulation and other environmental standards.
President Bola Tinubu, represented by Senator Abubakar Kyari, called on African cocoa-producing countries to focus on value addition to better capture the global chocolate market. He highlighted Nigeria's commitment to expanding local cocoa processing as part of its industrialization strategy.
The summit also saw the formation of the Cocoa Value Addition Alliance (CVAA), involving Nigeria, Ghana, Côte d’Ivoire, and Cameroon. This alliance aims to deepen regional cooperation and enhance local cocoa processing to secure a larger share of global cocoa revenues.
Moreover, Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, noted efforts are underway to build a $1 trillion Nigerian economy by 2030 through manufacturing incentives and investment promotion. The Federal Government also aims to expand market access via trade partnerships and the African Continental Free Trade Area (AfCFTA).
