Johnvents, a Nigerian agribusiness and manufacturing firm, on Tuesday signed a $40.5 million loan deal with UK’s Development Finance Institute (DFI) to more than double its cocoa processing capacity to 30,000 metric tons annually.
Cocoa is among the biggest non-oil exports in Nigeria and largely grown by small-scale farmers in the south of the country.
The loan will advance the company’s ambitious goal to achieve 100 per cent traceable cocoa, with at least 90 per cent certified, by 2027.
This in turn, is expected to enhance Nigeria’s global export capabilities, create economic opportunities for local farmers and boost export earnings.
Benson Adenuga, head of British International Investment’s (BII) office in Nigeria, said the institution was providing the long-term loan facility for Premium Cocoa Products Ile-Oluji cocoa, one of Johnvents’ subsidiaries, located in Ondo state.
“We are actually providing funding for them to acquire machines and refurbish and expand their factory,” Adenuga stated at the agreement signing held in Abuja.
This strategic collaboration comes at a pivotal time when Nigeria’s agricultural sector is poised to play a more prominent role in the global supply chain for sustainably sourced products.
Read also: Johnvents begins distribution of farm inputs to 6,000 farmers in Ondo
The transaction particularly supports Johnvents to source majority of its raw cocoa beans from local farmer cooperatives, thereby directly supporting smallholder farmers.
“We are delighted to partner with Johnvents Group to address critical barriers to the growth of Nigeria’s cocoa industry.
“Not only will this benefit local farmers, but also improve Nigeria’s trade balance and global competitiveness through increased exports,” Adenuga added.
Johnvents operates a group structure, with seven businesses – cocoa factory, trading, foods, industries, farms, and premium cocoa product, and hauling.
Known for exporting processed cocoa butter and powder, including to Europe, the firm is committed to driving sustainable growth across the agricultural value chain, including production, processing, manufacturing and
commodity trading and food products in locally and globally.
Jonny Baxter, British Deputy High Commissioner in Lagos stated that UK is happy to fund such project and will continue to support first class sustainable investments that not only create jobs, but also build mutually beneficial partnerships for both countries.
He futher mentioned that the UK is committed to working with the Nigerian government on its economic reform agenda, and is “eager to maximize the impact of such partnerships to ensure inclusive growth across the country.”
Baxter is optimistic that through partnerships, UK and Nigeria can strengthen supply chains, transform economic potential in both countries and further increase their £7.5 billion trade volume.
Emphasising the importance of this milestone, Johnson Alamu, Group MD, Johnvents said it will not only boost the firm’s processing capabilities but also empower thousands of Nigerian farmers to contribute to the country’s overall economic development.
He said: “At Johnvents Group, we are dedicated to building a sustainable and globally competitive agribusiness industry in Nigeria.
“The investment into the Premium Cocoa Products Ile-Oluji facility – one of our cocoa processing subsidiaries, coupled with our partnership with BII, represents a significant step forward in achieving this goal.”
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