British International Investment (BII), the United Kingdom’s development finance institution (DFI) and impact investor, has signed a $40.5 million loan facility aimed at boosting cocoa production in Nigeria.
The signing ceremony was held on Tuesday at Transcorp Hilton, Abuja, and attended by Naijaonpoint.
The loan investment from BII aims to support the rehabilitation and refurbishment of Johnvents’ Group’s second cocoa processing facility in Ile-Oluji, Ondo State.
“Today, I am delighted to announce that we are signing a $40.5 million loan facility with Johnvents Group.
“We are delighted to partner with Johnvents Group to address critical barriers to the growth of Nigeria’s cocoa industry,” he said.
According to Balogun, the loan will enable the cocoa processing facility’s annual capacity to increase from 13,000 to 30,000 metric tonnes.
“BII has a rich history in Nigeria dating back to 1948.
“We have been investing in Nigeria for over 75 years. We are committed to long-term investment in the country, tailoring our products to overcome market challenges,” he explained.
“By working in partnership, we can strengthen the supply chains between the UK and Nigeria, transform economic potential in both countries and further increase the £7.5 billion trade volume between the UK and Nigeria,” he said.
Nigeria’s cocoa earnings surged by 279% in the first quarter of 2024, driven by elevated cocoa prices.
Data from the National Bureau of Statistics (NBS) showed that cocoa exports reached a value of N408.66 billion in the first three months of 2024, up from N107.59 billion during the same period in 2023.
The report reveals that around 76% of the cocoa farmers interviewed were smallholders with less than 2 hectares under cultivation, while only about 3% managed more than 5 hectares. The majority of these farmers were aged between 36 and 45.