Agro-Eknor, a Nigeria agribusiness company, is set to expand its export operations, enhance supply chain efficiency, and unlock greater value for Nigeria’s agricultural sector through a strategic funding option.
This is coming after a recent successful N5 billion commercial paper issuance programme debuted on FMDQ and facilitated by United Capital Plc.
Timi Oke, chief executive officer of Agro-Eknor, said that the success of the issuance reflects growing investor confidence in Nigeria’s agribusiness sector and highlights the increasing role of alternative financing solutions in supporting sustainable economic development.
“This commercial paper issuance is a testament to Agro-Eknor’s financial strength, credibility, and unwavering commitment to revolutionizing agribusiness in Nigeria,” he said.
“By leveraging structured financing, we are accelerating our expansion, empowering farmers, and creating long-term value for the economy,” Oke added.
According to him, the proceeds from the N5 billion issuance will be deployed to scale Agro-Eknor’s export operations and by extension, strengthen Nigeria’s competitive edge in global agricultural trade.
He disclosed that it will also help to enhance supply chain efficiency by improving logistics, processing, and distribution networks, and support smallholder farmers with expanded partnerships to boost productivity and profitability in the agricultural value chain.
Read also: Olam Agri leads food industry in workforce impact
Oke noted that Agro-Eknor will also drive economic growth by creating jobs, increasing foreign exchange earnings, and positioning agribusiness as a catalyst for national development.
“The success of this transaction underscores the confidence investors have in our vision and the resilience of Nigeria’s agricultural sector.”
The commercial paper was arranged and placed by United Capital Plc, which also indicates that the successful issuance marks a pivotal moment for Nigeria’s debt capital market and agribusiness sector, showcasing the growing appetite for investments in non-oil industries.
By leveraging structured financing, the organisation is setting a model for how agribusinesses can access the capital market for expansion, reducing reliance on traditional bank loans and unlocking new funding opportunities.
Oke explained that this issuance underscores the increasing sophistication of Nigeria’s capital market, providing investors with high-quality, asset-backed opportunities in the agribusiness sector.
He noted that the organisation’s ability to secure capital through the commercial paper market signals a shift in how agribusinesses can access funding.
He also said the successful issuance will create greater investor participation in Nigeria’s agricultural value chain and enhanced financial inclusion for agribusinesses seeking non-traditional funding options.
“This successful issuance is expected to encourage more agricultural enterprises to explore capital market financing as a means to scale operations and increase economic impact,” Oke stated.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
