The Bank of Industry (BOI) has introduced an €85 million long-term financing programme to boost cocoa processing in Nigeria, with the goal of reducing the country’s reliance on exporting raw cocoa beans and increasing value addition within the sector.
The initiative was announced by BOI Managing Director and Chief Executive Officer, Dr. Olasupo Olusi, during the Cocoa Value Addition Summit 2026 held in Abuja. Speaking on the summit’s theme, “From Bean to Brand,” Olusi said the bank is committed to supporting industries that process agricultural products locally instead of exporting them in raw form.
The financing package is being implemented through a partnership between the Bank of Industry and the European Investment Bank (EIB), with additional backing from the European Union under its Global Gateway initiative.
Olusi explained that cocoa remains a priority for the bank because it supports the livelihoods of thousands of Nigerians. He said the programme is designed to improve productivity, encourage local processing, strengthen market access and increase the earnings of farmers and processors.
According to him, about 70 percent of the €85 million fund will be directed to the cocoa and dairy sectors, which BOI considers key industries for job creation and foreign exchange retention.
He noted that Nigeria continues to miss out on significant economic benefits by exporting raw cocoa beans instead of processing them into finished products such as chocolate. To address this challenge, BOI will provide both financial support and technical assistance to help businesses meet international quality, sustainability and climate standards, including compliance with the European Union Deforestation Regulation (EUDR).
The bank also plans to introduce dedicated funding windows for cooperative groups of smallholder farmers, offering concessionary loans to improve access to affordable financing.
Olusi added that BOI’s long-term vision is to establish cocoa processing factories within producing communities, creating more jobs, generating tax revenue and ensuring greater value remains within the Nigerian economy. He said locally processed cocoa products could generate up to $30,000 per tonne, compared to about $9,000 per tonne from raw cocoa exports.
Also speaking at the event, the Permanent Secretary of the Federal Ministry of Industry, Trade and Investment, Dr. Chris Isokpunwu, represented by the Director of Industrial Development, Mohammed Bala, said over 80 percent of Nigeria’s cocoa is still exported as raw beans despite the country’s strong processing potential.
He stressed that expanding domestic cocoa processing would increase export earnings, create employment opportunities and support the growth of related industries, including confectionery, cosmetics and pharmaceuticals.
The financing programme comes as Nigeria’s cocoa industry continues to recover from a period of price instability. Earlier this year, cocoa farmers in Ondo, Osun and Ekiti states reported significant losses following a sharp decline in cocoa prices, which erased much of the gains recorded during the 2024 market boom.
Global cocoa prices also dropped sharply after reaching record highs in 2025 but have recently shown signs of recovery, raising hopes that stronger local processing will help protect Nigerian farmers and processors from future fluctuations in international markets.
