Bank of Industry Unveils €85m Funding to Expand Cocoa Processing
The Bank of Industry (BOI) has announced a €85 million financing initiative aimed at strengthening Nigeria’s cocoa industry through increased local processing and value addition.
The bank’s Managing Director and Chief Executive Officer, Olasupo Olusi, disclosed the development at the Cocoa Value Addition Summit held in Abuja. He said the funding would support efforts to shift the sector’s focus from exporting raw cocoa beans to developing domestic processing capacity.
The facility, arranged in collaboration with the European Investment Bank and backed by the European Union under its Global Gateway programme, is designed to provide long-term, low-cost financing to key players across the cocoa value chain. BOI said priority would be given to processors, cooperatives, and small and medium-scale enterprises engaged in local production activities.
According to the bank, a significant share of the funding will be directed at cocoa and dairy sectors, which are considered vital for job creation and foreign exchange earnings. In addition to financing, beneficiaries will receive technical support to help them meet international regulatory and environmental standards, including requirements for access to European markets.
Olusi stressed the need to move away from dependence on raw exports, noting that greater value can be achieved through local processing. He added that the initiative is expected to improve productivity, strengthen market access, and boost incomes for farmers and industry participants.
Government representatives at the event highlighted cocoa’s importance to Nigeria’s industrial development, noting that a large proportion of production is still exported in raw form despite significant processing potential. They said expanding local capacity would not only increase export revenue but also drive growth in related industries such as food processing, cosmetics, and pharmaceuticals.
Stakeholders from across Africa also called for stronger collaboration among cocoa-producing countries to capture more value from the global chocolate market. They noted that while the continent accounts for a large share of global cocoa production, its earnings from the industry remain relatively low.
The BOI initiative is expected to encourage the establishment of processing facilities closer to farming communities, with the aim of creating jobs, increasing local earnings, and enhancing the overall competitiveness of Nigeria’s cocoa sector.
