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| International Monetary Fund’s & World Bank |
In a significant boost for Nigeria’s agricultural sector, the European Investment Bank Group’s international development arm, EIB Global, and First City Monument Bank (FCMB) have launched a financing package totaling €85 million (approximately ₦140 billion at current exchange rates) aimed at strengthening private-sector companies across key agricultural value chains.
Announced during the Annual Meetings of the International Monetary Fund and World Bank Group in Bangkok, the deal prioritizes cocoa and dairy, with at least 70% of the funds earmarked for these sectors.
The partnership goes beyond simple lending. It combines long-term credit with technical assistance designed to help Nigerian agribusinesses meet international environmental and social standards, improve traceability, expand processing capacity, and create more value locally.
Officials present at the announcement included 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.
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Why Cocoa and Dairy Matter for Nigeria
Nigeria ranks among the world’s top cocoa producers and exporters, typically placing fourth or fifth globally behind Côte d’Ivoire, Ghana, and Indonesia. Cocoa remains a vital non-oil export earner and supports hundreds of thousands of smallholder farmers, primarily in the southwest and south-south regions. Yet the sector has long suffered from limited local processing: much of the crop is still exported as raw beans, meaning Nigeria captures only a fraction of the final value in chocolate and cocoa products. Challenges include aging trees, climate vulnerability, limited access to finance for cooperatives, and the need to comply with the European Union’s Deforestation Regulation (EUDR), which requires strict traceability to ensure products are not linked to forest clearance after 2020.
The dairy side presents an even starker opportunity. Nigeria is one of Africa’s largest milk consumers but produces only a small share of its needs domestically. The country imports the majority of its dairy products, draining foreign exchange and leaving local producers—many of them pastoralists and small processors—unable to scale. Demand continues to rise with urbanization and a growing middle class, while EU companies operating in or exporting to Nigeria also seek more reliable local milk supply.
This EIB Global facility is notable as the bank’s first investment covering the dairy sector outside the European Union.
By channeling funds through FCMB, a major Nigerian commercial bank with nationwide reach, the financing can reach private companies, cooperatives, and mid-sized processors that often struggle to access affordable, longer-tenor capital from local markets.
Alignment with Broader Strategies
The operation fits squarely within the European Union’s Global Gateway initiative, which seeks to mobilize up to €300 billion in public and private investment between 2021 and 2027 for sustainable infrastructure and value chains in partner countries. It also contributes to the Team Europe Initiative on Green Economy in Nigeria, which emphasizes climate-smart agriculture, inclusive agribusiness, and better market access for rural producers.
EIB Global financing will support industrial processing capacity along the cocoa value chain, provide liquidity to cooperatives and farmers, and strengthen product traceability.
Compliance with the EUDR is built into the design, aiming to conserve biodiversity, reduce environmental externalities, and promote inclusive rural development. On the dairy side, the credit line addresses market gaps that have constrained growth and limited opportunities for both Nigerian firms and European businesses needing increased local milk supply.
Alongside the credit, EIB Global is providing technical assistance to bolster FCMB’s own climate action strategy and to help the wider Nigerian agriculture sector better manage environmental and social risks. This dual approach—finance plus capacity building—reflects lessons from earlier development finance efforts: capital alone is often insufficient without stronger risk management, standards compliance, and institutional readiness.
Voices from the Announcement
EIB Group President Nadia Calviño underscored the dual benefits: “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 win-win partnership.”
EIB Vice-President Ambroise Fayolle highlighted the human impact: “With this financial partnership with First City Monument Bank, EIB Global concretely supports Nigerian agribusinesses to grow competitively while meeting international environmental and social standards. Such investment is important for the country in terms of employment, health and the economy, with real impact on the local population. It is a concrete example of the EU Global Gateway initiative in which the EIB Group, as the EU bank, is a key actor and partner in Africa.”
European Commissioner for International Partnerships Jozef Síkela focused on value retention: “Nigeria has enormous potential in agriculture. To turn that potential into more jobs, stronger businesses and new economic opportunities, we need to ensure that more value is created and retained in Nigeria.
This Global Gateway investment with EIB Global and First City Monument Bank will help businesses across the cocoa and dairy value chains access the finance they need to grow and expand local processing. That is how we build stronger value chains and deepen the EU-Nigeria partnership for the benefit of both sides.”
FCMB CEO Yemisi Edun emphasized the difference access to capital can make at the farm and firm level: “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.”
EIB’s Track Record in Nigeria & the Road Ahead
Since beginning operations in Nigeria in 1978, the EIB Group has invested approximately €2.3 billion in the country. Previous financing has supported sustainable urban transport, climate adaptation, innovation and digitalization, agribusiness logistics, and small and medium-sized enterprises as well as mid-caps. This new agriculture-focused facility continues that trajectory while sharpening the focus on climate-aligned, standards-compliant value chains.
For Nigeria, success will depend on effective disbursement through FCMB, uptake by eligible private-sector actors, measurable improvements in processing capacity and farmer incomes, and demonstrable progress on traceability and environmental standards. If the technical assistance component succeeds in embedding stronger climate and social risk management at both the bank and sector levels, the impact could extend beyond the direct beneficiaries of the €85 million.
The partnership illustrates a practical model of development finance in the current era: blending European public capital with local banking networks, pairing money with technical support, and aligning commercial growth with sustainability requirements that increasingly determine access to premium international markets. For cocoa farmers seeking better prices through certified, deforestation-free beans, and for dairy producers aiming to reduce Nigeria’s import dependence, the difference between ambition and results will lie in how effectively this capital reaches the ground and transforms operations along the value chain.
As Global Gateway and Team Europe initiatives continue to roll out across Africa, deals of this nature will be watched closely—not only for their immediate financial scale, but for whether they deliver durable increases in local value addition, rural employment, and climate resilience.
Samuel O. Sulaimon is the founder and Editor-in-Chief of Naijapiz. He covers News, Sports, Finance, Faiths, Education, Politics and Technology.
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