The Bank of Industry (BOI) has introduced an €85 million long-term financing programme aimed at expanding cocoa processing in Nigeria, a move designed to reduce the country’s reliance on exporting raw cocoa beans while increasing local manufacturing, job creation and foreign exchange earnings.
The funding initiative, announced during the Cocoa Value Addition Summit 2026 in Abuja, is expected to strengthen Nigeria’s cocoa value chain by supporting processors, farmers and businesses involved in transforming cocoa into finished products rather than exporting raw commodities.
The financing package is being delivered through a partnership between the Bank of Industry and the European Investment Bank, with support from the European Union’s Global Gateway programme. Brandspur Banking News Desk understands that the initiative forms part of broader efforts to improve industrial development and enhance the competitiveness of Nigeria’s agricultural exports.
BOI said the programme will focus heavily on cocoa and dairy, with about 70% of the available funding earmarked for the two sectors because of their strong potential to create employment, stimulate local industries and retain more export value within Nigeria.
Beyond providing long-term finance, the bank plans to support beneficiaries with technical assistance to help them meet international quality, sustainability and climate standards, including compliance with the European Union Deforestation Regulation (EUDR), which increasingly influences access to European markets.
The bank also intends to introduce concessionary financing for organised smallholder farmer cooperatives, improving access to affordable credit and encouraging greater participation in value-added agricultural production.
According to BOI, expanding domestic processing capacity could significantly increase earnings from Nigeria’s cocoa industry. While exporting raw cocoa beans generates considerably lower returns, converting the crop into products such as chocolate and other finished goods has the potential to deliver substantially higher revenue per tonne and keep more economic value within local communities.
Government officials at the summit also stressed that Nigeria continues to export the vast majority of its cocoa in raw form despite possessing significant opportunities for local processing. Increasing domestic manufacturing, they noted, could strengthen export earnings while supporting industries including food manufacturing, cosmetics and pharmaceuticals.
The financing programme comes as Nigeria’s cocoa industry navigates a period of market volatility. After global cocoa prices surged to record highs before falling sharply over the past year, producers have faced declining incomes and increased financial pressure. Although international prices have shown signs of recovery in recent months, industry stakeholders believe stronger local processing will help shield farmers and businesses from future fluctuations in the global cocoa market.
