EIB Global, the international development division of the European Investment Bank Group, and First City Monument Bank have agreed on €85 million in financing for private businesses operating across Nigeria’s agricultural supply chains. At least 70% of the funding is earmarked for the cocoa and dairy industries.
The agreement was unveiled on the sidelines of the International Monetary Fund and World Bank Group Annual Meetings in Bangkok. Those attending included EIB Group President Nadia Calviño; Nigeria’s 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 Yemisi Edun.
The transaction marks EIB Global’s first dairy-sector investment outside the European Union. It supports Nigeria’s goals for inclusive, sustainable agriculture and will apply environmental and social standards. The funding is intended to close financing shortfalls in the dairy market while helping European companies active in Nigeria secure the additional milk supplies they require.
Nigeria is among the world’s leading cocoa exporters, and the financing channelled through FCMB is designed to expand industrial processing throughout the cocoa chain. It will also provide working-capital support for farmer groups and cooperatives, while improving product traceability. Investments will be required to meet the EU Deforestation Regulation, or EUDR, with the aim of protecting biodiversity, lowering environmental costs and advancing inclusive development in rural areas under EU standards, the EIB Group Climate Roadmap and the European Green Deal.
In addition to the credit facility, EIB Global will provide technical assistance to help FCMB implement its climate-action strategy and strengthen the Nigerian farm sector’s ability to identify and manage environmental and social risks.
“Agricultural value chains in Africa are central to food security and economic expansion, which is why the EIB Group is investing in them,” Calviño said. “The projects also create commercial openings for EU businesses in Nigeria, making this a genuinely mutually beneficial partnership.”
Fayolle said the arrangement would give Nigerian agribusinesses practical support to become more competitive while complying with international environmental and social requirements. He said the investment could affect employment, health and economic activity, delivering tangible benefits for local communities. It also represents a practical example of the EU Global Gateway programme, in which the EIB Group plays a major role as the EU bank and an African partner.
Síkela said Nigeria’s agricultural potential was substantial, but that generating more employment, stronger companies and fresh economic opportunities required a greater share of value to be produced and retained inside the country. The Global Gateway-backed partnership involving EIB Global and FCMB would enable businesses in the cocoa and dairy sectors to obtain financing for growth and for increased domestic processing, he said. This would reinforce supply chains and deepen the EU-Nigeria relationship to the advantage of both partners.
Edun said access to credit can determine whether farmers and agricultural businesses merely sell unprocessed crops or develop enterprises that add value, increase earnings and hire more people. Under the partnership, companies throughout Nigeria’s cocoa and dairy sectors will receive longer-term capital to raise output, expand processing facilities and enter additional markets. Combining funding with technical support will help improve rural incomes, encourage sustainable expansion and build a more resilient agricultural economy, she said.
The programme is consistent with EU geopolitical priorities and Nigeria’s development strategy, particularly through its support for sustainable food systems and strategic food self-sufficiency. It also contributes to the Team Europe Initiative on Green Economy, which promotes climate-smart farming, inclusive agribusinesses, rural connectivity and access to agricultural markets.
Since beginning operations in Nigeria in 1978, the EIB Group has invested €2.3 billion in the country. Its financing has backed projects in areas including sustainable urban mobility, climate resilience, innovation, digitalisation, agribusiness logistics, small and medium-sized enterprises, and mid-sized companies.
The European Investment Bank is the European Union’s long-term lending institution and is owned by EU Member States. It finances projects that advance EU policy aims. EIB Global is the EIB Group unit dedicated to expanding the impact of development finance and international partnerships, and serves as a key Global Gateway partner. It aims to support €100 billion in investment by the end of 2027.
Working within the Team Europe framework, EIB Global develops targeted partnerships with other development-finance institutions and civil-society organisations. Its network of offices internationally is intended to bring the EIB Group closer to individuals, businesses and public institutions around the world.
FCMB offers retail, business and corporate banking services across Nigeria. Its financial products are intended to help individuals and companies pursue their objectives, while its “My Bank & I” proposition is aimed at promoting inclusive and sustainable growth in the communities where it operates.
Global Gateway is the EU’s initiative to narrow the global investment gap and promote smart, clean and secure connections in digital infrastructure, energy and transport, while strengthening health, education and research systems. Its Team Europe model combines the European Union, Member States and European development-finance institutions. The strategy seeks to mobilise as much as €300 billion in public and private investment between 2021 and 2027, with the objective of creating essential connections rather than dependencies and reducing worldwide investment shortfalls.
