The European Investment Bank Group’s international development arm, EIB Global, and First City Monument Bank (FCMB) has announced a financing facility totalling €85 million to support private-sector companies across agricultural value chains in Nigeria.
The announcement was made during the Annual Meetings of the International Monetary Fund and the World Bank Group in Bangkok in the presence of EIB Group President Nadia Calviño, Nigerian Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele, EIB Vice-President Ambroise Fayolle, European Commissioner for International Partnerships Jozef Síkela and FCMB Chief Executive Officer Yemisi Edun.
The operation is EIB Global’s first investment covering the dairy sector outside the European Union and is fully aligned with Nigeria’s development objectives in sustainable agriculture and inclusion as well as environmental and social standards (ESS).
Special Focus on Cocoa, Dairy Products
The EIB Global financing will address market gaps in the dairy sector, enabling the growth of EU businesses in Nigeria requiring an increase in milk supply.
With Nigeria being one of the world’s largest exporters of cocoa, the investments provided by EIB Global through FCMB will strengthen the industrial processing capacities along the whole value chain, provide liquidity support to cocoa cooperatives and farmers and improve the traceability of products.
Compliance with the EU Regulation on Deforestation (EUDR) will be ensured, fostering biodiversity conservation and reducing environmental externalities while supporting inclusive rural development in line with EU standards, the EIB Group’s Climate Roadmap and the European Green Deal.
Alongside the credit line, EIB Global is providing technical assistance to support FCMB’s climate action strategy and the Nigerian agriculture sector’s capacity to manage environmental and social risks.
“The EIB Group invests in agricultural value chains in Africa – main drivers of food security and economic growth.
“These projects also open business opportunities for EU companies in Nigeria, building a truly a win-win partnership.” EIB Group President Nadia Calviño said.
“For farmers and agribusinesses, access to finance can make the difference between selling raw produce and building businesses that process more, earn more and create more jobs.
“Through our partnership with EIB Global, businesses across Nigeria’s cocoa and dairy value chains will have access to the long-term funding needed to increase production, expand processing capacity and reach new markets. By combining financing with technical support, we aim to strengthen rural livelihoods, promote sustainable growth and help build a more resilient agricultural sector.” FCMB Chief Executive Officer Yemisi Edun said.
About EIB Global
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives.
The project aligns with the EU’s geopolitical priorities and Nigeria’s development plans by supporting sustainable food systems and strategic food autonomy. The investment also contributes to the Team Europe Initiative (TEI) on Green Economy, which promotes climate-smart agriculture, inclusive agribusiness, rural access and access to agricultural markets.
Overall in Nigeria, the EIB Group has invested €2.3 billion since the start of its activities in the country in 1978. The financing has supported impactful and transformative investments in crucial areas for Nigeria such as sustainable urban transport, climate adaptation, innovation and digitalisation, and agribusiness logistics as well as small and medium enterprises (SMEs) and mid-caps.
