85 Million Euro Loan Provided to Strengthen Nigeria's Cocoa Processing Sector

The Bank of Industry (BOI) of Nigeria announced that it has provided an 85 million euro loan facility aimed at increasing the country's local cocoa processing capacity and reducing dependence on raw material exports. Announced at the Cocoa Value-Added Summit held in Abuja, this fund is being implemented in collaboration with the European Investment Bank (EIB) and the European Union's Global Gateway Initiative.

This financing program aims to increase the incomes of farmers and strengthen market access by improving the efficiency of cocoa producers and processing facilities. Approximately 70 percent of the fund will be allocated to the cocoa and dairy sectors, which are identified as the areas with the highest potential for job creation and retaining foreign exchange earnings in the country. BOI will also provide technical support to ensure that beneficiaries comply with international quality and sustainability standards.

Nigeria is losing significant economic value because it continues to export raw materials instead of transforming cocoa beans into processed products. If local processing is increased, it is stated that an income of 30,000 dollars per ton can be obtained from processed cocoa products; whereas this figure remains at only 9,000 dollars in raw cocoa exports. The development of the sector is expected to increase employment and revitalize sub-sectors such as confectionery and cosmetics.