News in brief:
– Johnvents Group and British International Investment (BII) signed a $40.5 million deal to expand Nigeria’s cocoa sector.
– The investment will increase production capacity, improve exports, and promote sustainable cocoa farming.
Johnvents Group recently secured a $40.5 million partnership with British International Investment (BII), the UK’s development finance institution, which will significantly boost Nigeria’s cocoa sector. The agreement, signed in Abuja on Tuesday, aims to enhance cocoa production, expand global export capacity, and create economic opportunities for local farmers.
The funding will support Premium Cocoa Products, a subsidiary of Johnvents Group, increasing its production capacity from 13,000 to 30,000 metric tonnes annually.
UK government backs sustainable cocoa investment
Speaking at the signing ceremony, British Deputy High Commissioner in Lagos, Jonny Baxter, reaffirmed the UK’s commitment to sustainable investment in Nigeria.
“The UK is proud to back first-class sustainable investment that is creating jobs and mutually beneficial partnerships across Nigeria,” Baxter stated.
He emphasised that strengthening cocoa sourcing and processing would benefit farmers, improve trade relations, and promote sustainable supply chains free from deforestation. Baxter also linked the investment to the UK’s Climate-Smart Rural Agriculture Program (ProCom+), which encourages sustainable cocoa production and attracts private capital into eco-friendly agribusiness.
The initiative is expected to contribute to the growing £7.5 billion trade volume between Nigeria and the UK.
BII’s vision for Nigeria’s cocoa industry
Benson Adenuga, Head of Office and Coverage Director at BII, highlighted the investment’s broader economic impact.
“Not only will this benefit local farmers, but it will also improve Nigeria’s trade balance and global competitiveness through increased exports,” he said.
Adenuga noted that the investment aligns with Johnvents’ goal of achieving 100% traceable cocoa by 2027, with at least 90% of its products certified to meet global standards.
With Nigeria ranking as the world’s fourth-largest cocoa producer, the investment is positioned to unlock significant economic potential. The cocoa market, currently valued at $6 billion, could reach $25 billion if international prices continue to rise.
Johnvents Group: driving value addition in cocoa
John Alamu, Group Managing Director of Johnvents Group, emphasised cocoa’s historical significance to Nigeria’s economy.
“Whoever said money doesn’t grow on trees has never been to a cocoa farm,” Alamu remarked. He lamented the marginalisation of Nigeria’s cocoa sector in global value chains and stressed the need for value addition rather than raw exports.
“Today marks a further shift from exporting raw cocoa to producing world-class, high-value cocoa products,” he declared.
Alamu expressed gratitude to BII for trusting Johnvents’ vision and affirmed that the partnership marks the beginning of a transformation in the industry.
BII’s commitment to Nigeria’s growth
Chris Chijiutomi, Managing Director and Head of Africa at BII, reiterated Nigeria’s importance to BII’s long-term investment strategy.
“Nigeria is a very key positive market for us,” he said, noting that BII has been active in Nigeria for 77 years, creating over 63,000 direct jobs through investments in financial services, energy, manufacturing, infrastructure, and agriculture.
He emphasised BII’s role in supporting indigenous Nigerian businesses that struggle to access the right type of capital.
“This investment underscores our commitment to financing critical sectors that support growth and backing ambitious, Nigerian-grown businesses,” Chijiutomi added.
Cocoa Research Institute backs investment
Patrick Adebola, Executive Director of the Cocoa Research Institute of Nigeria, described the investment as a landmark development for Nigeria’s cocoa industry.
He highlighted the sharp rise in cocoa prices, which have surged from $1,800 per ton last year to between $8,000 and $12,000 in 2025, benefiting local farmers.
He also stressed the importance of processing cocoa into finished products like chocolate, which significantly increases its value—from $1 for 1kg of cocoa to $15 for 1kg of chocolate.
However, he noted the disparity in cocoa yields between Nigeria and Ghana, pointing out that while Nigeria cultivates 1.4 million hectares of cocoa farms, it produces only 340,000 metric tonnes, compared to Ghana’s 900,000 metric tonnes from 1.15 million hectares.
Adebola emphasised the need for improved agricultural practices and higher-yield cocoa varieties to enhance productivity without expanding farmland.
With this strategic investment, Nigeria is poised to strengthen its position in the global cocoa market, boost foreign exchange earnings, and create new economic opportunities for over 300,000 smallholder farmers. Industry stakeholders are optimistic that the deal will catalyse a sustainable transformation in the cocoa industry, reinforcing Nigeria’s role as a leading player in the international agricultural trade.
