EIB Global, the European Investment Bank’s development arm, and Nigeria’s Bank of Industry (BOI) have signed an €85 million financing agreement to support private-sector businesses across agricultural value chains, including cooperatives and micro, small and medium-sized enterprises.
At least 70% of the lending under the agreement will be directed to cocoa and dairy supply chains, the EIB announced on Monday.
The announcement was made on the sidelines of the Nigeria-EU Ministerial Summit in Abuja in the presence of EIB Head of Unit Svetla Stoeva and BOI Managing Director and chief executive Olasupo Olusi.
The funding is intended to support projects linked to sustainable cocoa production and dairy supply management, with the financing to be provided through BOI, the EIB stated.
It added that the operation is backed by the EU’s Global Gateway initiative and will be implemented in line with environmental and social standards.
Technical support and standards
Technical assistance will be provided alongside the credit line to support BOI’s climate action strategy and build capacity in managing environmental and social risks in the agriculture sector, the EIB said.
The partnership is intended to provide “long-term, affordable finance” for priority sectors, Olusi said in a statement from BOI.
EIB Vice President Ambroise Fayolle said the bank was financing the project for the development of agricultural value chains in Nigeria, including sustainable cocoa.
European Commissioner for International Partnerships Jozef Sikela said the investment would strengthen cocoa and dairy value chains and support local processing.
The EIB said it has invested €2.3 billion in Nigeria since it began operating in the country in 1978.
