EIB Global, FCMB to finance cocoa, others with N127.4bn – Daily Trust

The European Investment Bank Group’s worldwide improvement arm, EIB Global, and First City Monument Bank (FCMB) have introduced the financing totalling €85 million (N127.4bn) to help private-sector firms throughout agricultural worth chains in Nigeria.

At least 70% of the financing will goal cocoa and dairy worth chains, a press release indicated.

The announcement was made throughout the Annual Meetings of the International Monetary Fund and the World Bank Group in Bangkok within the presence of EIB Group President Nadia Calviño, Nigerian Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele, EIB Vice-President Ambroise Fayolle, European Commissioner for International Partnerships Jozef Síkela and FCMB Chief Executive Officer, Yemisi Edun.

According to a press release, the operation is EIB Global’s first funding masking the dairy sector outdoors the European Union and is totally aligned with Nigeria’s improvement targets in sustainable agriculture and inclusion in addition to environmental and social requirements (ESS).

The assertion defined that the EIB Global financing will handle market gaps within the dairy sector, enabling the expansion of EU companies in Nigeria requiring a rise in milk provide.

“With Nigeria being one of the world’s largest exporters of cocoa, the investments provided by EIB Global through FCMB will strengthen the industrial processing capacities along the whole value chain, provide liquidity support to cocoa cooperatives and farmers and improve the traceability of products. Compliance with the EU Regulation on Deforestation (EUDR) will be ensured, fostering biodiversity conservation and reducing environmental externalities while supporting inclusive rural development in line with EU standards, the EIB Group’s Climate Roadmap and the European Green Deal,” the assertion stated.

Alongside the credit score line, EIB Global is offering technical help to help FCMB’s local weather motion technique and the Nigerian agriculture sector’s capability to handle environmental and social dangers.

“The EIB Group invests in agricultural value chains in Africa – main drivers of food security and economic growth,” stated EIB Group President Nadia Calviño. “These projects also open business opportunities for EU companies in Nigeria, building a truly a win-win partnership.”

“With this financial partnership with First City Monument Bank, EIB Global concretely supports Nigerian agribusinesses to grow competitively while meeting international environmental and social standards,” stated EIB Vice-President Ambroise Fayolle. “Such investment is important for the country in terms of employment, health and the economy, with real impact on the local population. It is a concrete example of the EU Global Gateway initiative in which the EIB Group, as the EU bank, is a key actor and partner in Africa.”

“Nigeria has enormous potential in agriculture,” stated European Commissioner for International Partnerships Jozef Sikela. “To turn that potential into more jobs, stronger businesses and new economic opportunities, we need to ensure that more value is created and retained in Nigeria. This Global Gateway investment with EIB Global and First City Monument Bank will help businesses across the cocoa and dairy value chains access the finance they need to grow and expand local processing. That is how we build stronger value chains and deepen the EU-Nigeria partnership for the benefit of both sides.”

“For farmers and agribusinesses, access to finance can make the difference between selling raw produce and building businesses that process more, earn more and create more jobs,” stated FCMB Chief Executive Officer Yemisi Edun. “Through our partnership with EIB Global, businesses across Nigeria’s cocoa and dairy value chains will have access to the long-term funding needed to increase production, expand processing capacity and reach new markets. By combining financing with technical support, we aim to strengthen rural livelihoods, promote sustainable growth and help build a more resilient agricultural sector.”

Overall in Nigeria, the EIB Group has invested €2.3 billion for the reason that begin of its actions within the nation in 1978. The financing has supported impactful and transformative investments in essential areas for Nigeria similar to sustainable city transport, local weather adaptation, innovation and digitalisation, and agribusiness logistics in addition to small and medium enterprises (SMEs) and mid-caps.