The Bank of Industry (BOI) has unveiled an €85 million long-term financing facility to expand local cocoa processing, reduce Nigeria’s dependence on raw cocoa bean exports and strengthen value addition across the cocoa industry.
The facility was announced on Tuesday by Dr. Olasupo Olusi, Managing Director and Chief Executive Officer of BOI, at the Cocoa Value Addition Summit 2026 in Abuja.
Speaking at the summit, themed “From Bean to Brand,” Olusi said the bank is shifting its financing strategy towards promoting local processing and manufacturing rather than the export of unprocessed agricultural commodities.
The €85 million facility is being provided through a partnership between the European Investment Bank (EIB) and the Bank of Industry, with funding support from the European Union’s Global Gateway Initiative.
Olusi said cocoa remains a priority sector because of its importance to rural livelihoods and its potential to generate higher export earnings. “We are particularly focused on cocoa value chains, which provide livelihoods for thousands of Nigerians,” he said.
He explained that the financing programme is designed to improve productivity, promote value addition and strengthen market access for cocoa farmers and processors. “Through this initiative, we aim to enhance productivity, value addition and market linkages that will directly improve the incomes of farmers and processors.”
According to Olusi, about 70 per cent of the €85 million facility will be channelled to Nigeria’s cocoa and dairy sectors, which BOI considers critical to job creation and foreign exchange earnings.
He noted that Nigeria continues to lose substantial economic value by exporting raw cocoa beans instead of processing them into higher-value products such as chocolate and cocoa-based consumer goods.
To address this, BOI will provide not only financing but also technical support to help businesses meet international quality, climate and sustainability standards, including compliance with the European Union Deforestation Regulation (EUDR).
The bank also plans to establish dedicated financing windows for smallholder farmers organised into cooperatives, offering concessionary loans to improve access to affordable credit.
Olusi said BOI’s long-term goal is to encourage the establishment of processing factories within cocoa-producing communities so that more jobs, tax revenues and economic value remain in Nigeria.
He added that processed cocoa products could generate as much as $30,000 per tonne, compared with roughly $9,000 per tonne earned from exporting raw cocoa beans.
Also speaking at the summit, Dr. Chris Isokpunwu, the Permanent Secretary of the Federal Ministry of Industry, Trade and Investment, represented by the ministry’s Director of Industrial Development, Mohammed Bala, said more than 80 per cent of Nigeria’s cocoa is still exported in raw form despite the country’s vast processing potential.
He said expanding domestic processing would increase export earnings, create jobs and stimulate growth in related industries, including confectionery, cosmetics and pharmaceuticals.
The financing initiative comes as Nigeria’s cocoa industry grapples with volatile global prices.
Earlier this year, cocoa farmers in Ondo, Osun and Ekiti states reported that cocoa prices had fallen by more than 70 per cent from the record highs recorded in 2024, leaving many producers struggling to repay debts and sell their harvest profitably.
Global cocoa prices also declined sharply after reaching nearly $11,000 per metric tonne in 2025, before falling to about $4,197 per tonne by February 2026. However, prices rebounded by about 24 per cent in May, climbing above $4,400 per tonne and raising hopes that stronger local processing could help shield Nigerian farmers and processors from future swings in the international market.
