BOI to direct 70% of €85m EIB loan to boost Nigeria's cocoa and dairy sectors

Nigeria's leading development finance institution, the Bank of Industry (BOI), has received a €60 million credit facility from the European Investment Bank to support Nigeria's cocoa and dairy sectors. The focus is on processing, ingredients, and chocolate manufacturing.

The Managing Director and CEO of BOI, Olasupo Olusi, shared this news on Tuesday at the Africa Cocoa Summit in Abuja. This summit was organized by the Federal Ministry of Industry, Trade and Investment.

The ministry's goal is to shift Africa from exporting raw beans to processing and branding locally. The Cocoa Value Addition Summit, themed ‘From Bean to Brand,’ saw participation from leaders and stakeholders from Nigeria, Ghana, Côte d’Ivoire, and Cameroon. They signed the Abuja Declaration to set up the Cocoa Value Addition Alliance (CVAA).

Mr Olusi explained that the €60 million is part of the €85 million EIB-BOI facility, which is backed by the European Union under the Global Gateway initiative. This fund is aimed at strengthening these important sectors in Nigeria.

The BOI chief emphasized that the cocoa value chain initiative supports thousands of Nigerians. It aims to boost productivity, add value, and create market links that will increase the incomes of farmers and processors in Nigeria.

“This agreement shows the Bank of Industry’s commitment to providing long-term, affordable finance for sectors that promote inclusive growth.

“About 70 percent of the €85 million financing will go to Nigeria’s cocoa and dairy sectors. BOI sees these industries as having the potential to create jobs and keep foreign exchange earnings in the country,” Mr Olusi said.

He noted the focus would be on cocoa value chains that provide jobs for many Nigerians. The goal is to improve productivity, add value, and create market connections to raise incomes for farmers and processors.

The BOI MD mentioned that the bank will prioritize lending to processors, cooperatives, and MSMEs that add value locally instead of just traders exporting raw beans. He stressed that the time has come to end the celebration of high volumes of raw exports. Nigeria loses a lot by exporting beans and importing finished chocolate.

The aim is to set up factories in cocoa-producing areas so that value, jobs, and taxes stay in Nigeria. But Mr Olusi pointed out that financing alone won't solve everything. BOI will also provide technical help on compliance, climate standards, and access to the EU market.

He added that BOI would help farmers and processors meet the EU Deforestation Regulation and other international standards for the environment and society. Citing BOI’s history, Mr Olusi said the bank gave out over ₦164 billion in 2025 to more than 3,500 agro and food-processing businesses.

This support helped finance factories, mills, packhouses, and cold chains, linking nearly 48,000 smallholder farmers to industrial value chains. The BOI leader stated that the new financing would cover the whole ecosystem, from nurseries and farmer cooperatives to grinding plants, ingredient factories, packaging lines, and chocolate makers.

President Bola Tinubu, represented by the Minister of Agriculture and Food Security, Abubakar Kyari, also spoke at the summit. He called for a strong shift from Africa's long-standing reliance on exporting raw cocoa beans.

Mr Tinubu urged stakeholders from producing countries to focus on adding value and capturing a bigger share of the global chocolate market. He pointed out that while Africa produces around 70 percent of the world's cocoa, the continent only keeps six cents of every dollar earned in the global chocolate industry.

He stressed that Nigeria is committed to processing more cocoa locally. The plan includes expanding chocolate manufacturing, building local brands, and competing better in international markets instead of just exporting raw beans.

Cocoa value addition is a key part of his Renewed Hope Agenda and Nigeria's wider industrial strategy. He also mentioned that investors are developing a 70,000-tonne cocoa processing plant in Shagamu, Ogun State, and Nigeria's cocoa grinding capacity has already exceeded 120,000 tonnes each year.

Earlier at the summit, the Minister of Industry, Trade and Investment, Jumoke Oduwole, said the summit matches the Federal Government's goal of creating a one-trillion-dollar economy by 2030.

She noted that despite Nigeria's big role in global cocoa production, the country still earns only a small part of the value across the cocoa chain. Ms Oduwole stated that the government is pushing for more value addition through manufacturing incentives, investment promotion, and better cooperation among relevant institutions.

The minister pointed out that the government would also improve market access by using existing trade partnerships and opportunities under the African Continental Free Trade Area (AfCFTA). This will encourage investors to tap into regional and global value chains to unlock the full economic potential of the sector.

Also speaking was the Minister of State for Industry, John Owan Enoh, who described the summit as a big step in executing Nigeria’s Industrial Policy. He announced plans for the establishment of the Cocoa Value Addition Alliance with Ghana, Côte d’Ivoire, and Cameroon, countries that make up about 75 percent of global cocoa production.

Mr Enoh said the alliance aims to boost regional cooperation, promote local processing, and help producing countries get a bigger slice of the global cocoa market.

“We are not here to disrupt existing partnerships but to expand them,” he said.

He urged African cocoa-producing nations to move beyond raw bean exports and focus on creating branded cocoa products that can compete in global markets.

Ransford Abbey, the Chief Executive of Ghana Cocoa Board (COCOBOD), also spoke. He urged African cocoa-producing countries to improve domestic processing.

“I am here to support the effort and commit to working together to increase value for our hardworking cocoa farmers and our economies,” Mr Abbey said.

He highlighted that Africa produces about 75 percent of the world's cocoa but makes less than 10 percent of the global chocolate industry's wealth. “This system cannot continue. We must shift from exporting raw poverty to creating wealth right here in Africa,” he added.

He mentioned that stronger regional cooperation, investment, and technology transfer will help African countries capture more value from the global cocoa economy.

The Head of Cooperation of the European Union Delegation to Nigeria and ECOWAS, Massimo De Luca, emphasized the need for value addition in the cocoa chain. He expressed the EU's support and called on governments to ensure a proper framework for the success of this initiative.