Julius Berger Nigeria Plc has officially exited agro-processing, announcing the lease of its cashew nut processing facilities to Eko Organic Food Industries Limited. The move, approved at the company’s board meeting on September 24, 2025, reflects a strategic shift back to its core business in construction.
The company first ventured into agro-processing in 2020, launching cashew facilities to diversify revenue beyond engineering and infrastructure. However, the latest decision signals the end of that five-year diversification effort.
Refocus on Core Strengths
The Board explained that leasing the facilities fits into Julius Berger’s long-term plan to sharpen competitiveness in construction while still deriving value from non-core assets.
By handing operations to Eko Organic Food, which specializes in agro-processing, Julius Berger ensures the cashew business continues while it channels more energy into infrastructure delivery.
“The goal remains to maintain and strengthen the Company’s competitive edge in construction, while prudently managing other ventures,” the disclosure noted.
Industry analysts describe the decision as a practical retreat from a challenging diversification, freeing up capital and management focus for Nigeria’s growing infrastructure needs.
Market Impact
While financial terms of the lease weren’t disclosed, experts say the deal helps Julius Berger unlock value from its investment without bearing operational risks outside construction.
“This is a smart pivot,” said Mr. Aruna Kebira, CEO of Globalview Capital Ltd. “Agro-processing was bold, but Julius Berger’s real strength is in construction. This decision allows them to double down on what they do best.”
For Eko Organic Food, the lease represents a significant boost, giving it control of a fully established facility and positioning it to grow its role in the cashew export value chain.
Looking Ahead
Julius Berger emphasized the move is not a withdrawal from exploring new opportunities but a careful recalibration of strategy. The company pledged to pursue ventures that align with and enhance its brand strength.
Key Timeline of Events
-
2020 — Diversification into agro-processing approved, cashew facility announced.
-
2021–2024 — Cashew facilities completed and operations tested.
-
2025 — Lease of cashew facilities to Eko Organic Food approved.
Civil engineering, infrastructure, and building projects remain the cornerstone of Julius Berger’s business, while the cashew legacy passes to a specialist operator for continued growth.
