EU lends US$220 M to support Nigeria’s cocoa & dairy sectors

NIGERIA – The European Union, through the European Investment Bank (EIB), has granted Nigeria a €190 million (US$219.5 million) credit line to strengthen financing for the cocoa and dairy sectors.

The financing, channelled through the European Investment Bank (EIB), was finalised during the second Global Gateway Forum held from October 9–10 in Brussels.

The initiative is part of the EU’s broader strategy to strengthen international partnerships and sustainable investment across Africa.

The credit line seeks to increase lending capacity among Nigerian commercial banks and encourage private sector financing for agriculture. The program also targets institutional reform and risk mitigation to improve long-term access to credit.

“The goal is to reduce risks associated with agricultural lending and strengthen institutional capacity for sustainable sector financing,” said Thourayya Tricki, Director of International Partnerships at the EIB.

Tricki added that the program would not only expand access to finance but also enhance sustainability and competitiveness within Nigeria’s agricultural value chains.

Nigeria has long struggled with limited agricultural financing, due to climate risks, insufficient collateral, and weak rural banking infrastructure.

Although agriculture contributes around 20% of GDP, it receives only 4% of total private bank loans, according to government data.

The situation is particularly challenging for climate-sensitive crops like cocoa. Preliminary forecasts from consultancy N’kalo predict an 11% drop in Nigeria’s 2025/2026 cocoa output, to 305,000 tonnes, due to adverse weather conditions.

Special Assistant to the Minister of Budget and Economic Planning, Bolaji Onalaja, and the EU Unit Focal Officer, Benjamin Galadima, reaffirmed the country’s commitment to implementing reforms under President Bola Tinubu’s Renewed Hope Agenda to attract sustainable investments.

“Our government is determined to create an enabling environment for investment through the forthcoming National Development Plan (2026–2030) and the Ward-Based Development Programme, which will ensure that growth reaches communities at the grassroots,” Onalaja said.

Additionally, Nigeria already benefits from several EU-supported programmes, including an €18 million technical assistance grant to strengthen the local regulatory framework for vaccine production and a €50 m credit facility to deepen access to finance in the pharmaceutical industry.

The EU’s financial support aligns with Nigeria’s broader agricultural reform agenda aimed at expanding access to credit for farmers and agribusinesses.

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