Nigeria’s cocoa and dairy value chains are set to receive targeted support through an €85 million financing facility announced by the European Investment Bank’s development arm, EIB Global, and First City Monument Bank (FCMB).

The agreement, reported by Streamline on 18 October following its announcement on 14 October, is designed to support private-sector businesses across Nigeria’s agricultural value chains. At least 70% of the facility is intended for the combined cocoa and dairy sectors.

For cocoa, the financing is expected to support industrial processing, provide liquidity to farmers and cooperatives, and improve product traceability. These measures could help businesses increase local value addition and meet international market requirements, including those linked to the European Union’s deforestation regulations.

The dairy component is intended to address gaps in milk supply and support the development of Nigeria’s dairy value chain. The investment also includes technical assistance to strengthen FCMB’s climate strategy and improve the management of environmental and social risks in agricultural lending.

The initiative comes as Nigeria seeks to develop agricultural industries that can supply domestic markets while expanding commercial opportunities for producers and processors. Stronger dairy production could help address supply constraints, while improved cocoa processing could allow more economic value to be retained within the country.

However, the facility is being channelled through FCMB, and publicly available announcements have not yet detailed the final lending terms for individual businesses. Interest rates, collateral requirements, application dates and the precise allocation between cocoa and dairy have not been published in the reports reviewed.

The agreement therefore represents a financing commitment rather than evidence that farmers and companies have already received the funds or increased production.

Its eventual impact will depend on how the facility is deployed, which businesses qualify and whether the financing reaches farmers, cooperatives and processors that need capital to expand.