Key points
- The Bank of Industry (BOI) will channel about 70% of an €85 million European Investment Bank (EIB) facility to Nigeria’s cocoa and dairy sectors.
- The financing includes a €60 million credit facility dedicated to expanding cocoa processing, dairy production and value addition.
- BOI says the fund will prioritise processors, cooperatives and MSMEs to deepen local manufacturing rather than raw commodity exports.
- The announcement coincided with the signing of the Abuja Declaration, establishing the Cocoa Value Addition Alliance (CVAA) by Nigeria, Ghana, Côte d’Ivoire and Cameroon.
Main Story
The Bank of Industry (BOI) says it will channel about 70 per cent of an €85 million financing facility from the European Investment Bank (EIB) into Nigeria’s cocoa and dairy industries as part of efforts to accelerate local processing, create jobs and reduce the country’s dependence on raw commodity exports.
Managing Director and Chief Executive Officer of BOI, Dr. Olasupo Olusi, disclosed this during the Africa Cocoa Summit held in Abuja, where African cocoa-producing countries agreed to deepen regional collaboration on value addition.
According to Olusi, the €60 million credit facility, which forms part of the broader €85 million EIB-BOI financing package backed by the European Union under its Global Gateway initiative, will support businesses involved in cocoa processing, ingredient production, chocolate manufacturing and dairy value chains.
He said the financing underscores BOI’s commitment to providing long-term, affordable capital to sectors capable of driving inclusive economic growth, employment and foreign exchange earnings.
Rather than financing businesses that export raw cocoa beans, the bank intends to prioritise processors, farmer cooperatives and micro, small and medium-sized enterprises (MSMEs) engaged in local value addition.
The Issues
Although Africa produces about 70 to 75 per cent of the world’s cocoa, the continent captures only a small share of the global chocolate industry’s value, with most earnings concentrated in countries that process and manufacture finished products.
For decades, Nigeria has largely exported raw cocoa beans, limiting opportunities for industrialisation, job creation, technology transfer and export earnings.
Industry stakeholders argue that expanding domestic processing capacity and strengthening regional cooperation are critical to repositioning Africa within the global cocoa value chain.
What’s Being Said
Olusi said BOI aims to transform Nigeria’s cocoa industry by supporting investments across the entire value chain.
“Approximately 70% of the €85 million financing facility will be channelled to Nigeria’s cocoa and dairy sectors, which BOI considers among the industries with the greatest potential to create jobs and retain foreign exchange earnings.”
He added that financing would be complemented with technical assistance to help beneficiaries comply with international sustainability requirements, including the European Union Deforestation Regulation, and improve access to European markets.
According to him, BOI financed more than 3,500 agro-processing businesses in 2025, disbursing over ₦164 billion to support factories, mills, packhouses and cold-chain infrastructure while linking nearly 48,000 smallholder farmers to industrial value chains.
More Insights
Speaking at the summit, President Bola Tinubu, represented by the Minister of Agriculture and Food Security, Senator Abubakar Kyari, urged African cocoa-producing countries to move beyond exporting raw beans and focus on manufacturing finished products.
He noted that although Africa accounts for roughly 70 per cent of global cocoa production, it retains only six cents of every dollar generated by the global chocolate industry.
Tinubu disclosed that investors are developing a 70,000-tonne cocoa processing plant in Shagamu, Ogun State, while Nigeria’s cocoa grinding capacity has already exceeded 120,000 tonnes annually.
Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, said the summit aligns with the Federal Government’s ambition of building a $1 trillion economy by 2030, adding that the government is promoting manufacturing incentives, investment promotion and regional trade under the African Continental Free Trade Area (AfCFTA).
Meanwhile, the Minister of State for Industry, Senator John Owan Enoh, announced the establishment of the Cocoa Value Addition Alliance (CVAA) involving Nigeria, Ghana, Côte d’Ivoire and Cameroon, countries responsible for about 75 per cent of global cocoa production.
The alliance was formalised through the signing of the Abuja Declaration, aimed at promoting regional cooperation, expanding local processing and increasing Africa’s share of the global cocoa economy.
What’s Next
BOI is expected to begin deploying the financing across the cocoa and dairy value chains, targeting investments from seedling production and farmer cooperatives to processing plants, packaging facilities and chocolate manufacturing.
The newly established Cocoa Value Addition Alliance is also expected to coordinate regional policies and investment strategies that encourage African countries to process more cocoa domestically and compete more effectively in global markets.
Bottom Line
The Bank of Industry’s decision to direct most of its €85 million EIB-backed financing to cocoa and dairy marks a significant shift towards industrial value addition. Combined with the launch of a regional cocoa alliance, the initiative signals Nigeria’s determination to capture a greater share of the global chocolate market, create jobs and strengthen non-oil exports.
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