Nigeria’s Johnvents Group signs $40.5m partnership deal with BII to boost Cocoa Industry

• Targets 30,000mt annually

From Juliana Taiwo-Obalonye, Abuja

In a boost for Nigeria’s agricultural sector, especially the cocoa industry, Johnvents Group has announced a partnership with British International Investment (BII), the UK’s development finance institution, to invest $40.5 million in the country’s cocoa industry.

The signing, which was done in Abuja on Tuesday, is a collaboration that aims to enhance cocoa production, expand global export capabilities, and create economic opportunities for local farmers.

The funding will specifically support Premium Cocoa Products, a subsidiary of Johnvents Group, increasing its production capacity from 13,000 to 30,000 metric tonnes per year.

British Deputy High Commissioner in Lagos, Jonny Baxter, emphasised the importance of the partnership, stating, “The UK is proud to back first-class sustainable investment that is creating jobs and mutually beneficial partnerships across Nigeria.”

Baxter reiterated that enhancing cocoa sourcing and processing capacity would not only support local farmers but also strengthen trade ties between Nigeria and the UK. He remarked on the significance of transforming supply chains to decouple agricultural commodities from deforestation while promoting positive social outcomes for local communities.

Baxter also connected this investment to the UK’s Climate-Smart Rural Agriculture Program (ProCom+), which promotes sustainable cocoa production in Nigeria. He emphasized that this program works alongside various stakeholders to attract private capital into sustainable forest commodities, ensuring deforestation-free cocoa production.

Overall, he noted that the partnership signifies a crucial step towards revitalizing Nigeria’s cocoa sector and boosting trade volumes between the UK and Nigeria, further contributing to an increase in trade volume between the two nations currently at £7.5 billion.

Head of Office and Coverage Director at BII, Benson Adenuga, on his part, highlighted the broader economic implications of the investment. “Not only will this benefit local farmers, but it will also improve Nigeria’s trade balance and global competitiveness through increased exports,” he stated. He said the investment aligns with Johnvents Group’s goal of achieving 100% traceable cocoa by 2027, with at least 90% of its products certified.

As the world’s fourth-largest cocoa producer, Nigeria has immense potential for growth in the international market. Currently valued at over $6 billion, the Nigerian cocoa market could generate up to $25 billion if international prices continue to rise. This investment positions Nigeria to capitalize on that potential by increasing its export capacity and diversifying its economic base away from oil dependency.

Group Managing Director of Johnvents Group, John Alamu, on his part, emphasised the historical significance of cocoa as a vital economic driver for Nigeria, stating, “Whoever said money doesn’t grow on trees has never been to a cocoa farm.” He highlighted that cocoa has long been the backbone of many communities across Nigeria, providing livelihoods and sustaining families. Alamu, however, lamented that the country’s cocoa sector has remained marginalized in global value chains.

He pointed out that while Nigeria is one of the top cocoa producers globally, mere production is not enough. He stressed the importance of innovation and value addition, declaring that the future of the industry lies in producing high-value cocoa products rather than just exporting raw materials. “Today marks a further shift from exporting raw cocoa to producing world-class, high-value cocoa products,” he asserted.

He expressed gratitude towards BII for their trust in Johnvents Group’s vision for a sustainable cocoa industry.

“This is just the beginning,” Alamu declared confidently as he welcomed guests to what he described as “the future of cocoa.”

Managing Director and Head of Africa for British International Investment (BII), Chris Chijiutomi, highlighted BII’s long-standing commitment to Nigeria and its economy. He stated, “It’s always a pleasure to come to occasions like this, where we’re really celebrating economic development towards investments and really creating understanding through mentioned relationships.”

He stressed Nigeria’s importance to BII, noting, “Nigeria is a very key positive market for us.” He mentioned BII has been an active partner in Nigeria for 77 years, contributing to the creation of 63,000 direct jobs through investments in financial services, energy, manufacturing, infrastructure, and agriculture. He described the investment in Johnvent as a diversification and a long-term investment.

Chijiutomi highlighted BII’s strategy of supporting strong, sustainable businesses with experienced management teams, noting the importance of improving domestic manufacturing capabilities and generating economic productivity.

He stated, “As an investor committed to generating positive impact, supporting Nigeria’s agricultural sector, we see is very vital.” He recalled Nigeria’s strong agricultural sector from his youth and emphasised the potential for its revival.

He pointed out that agriculture accounts for a quarter of Nigeria’s GDP and employs over 70% of its population, with a majority being smallholder farmers. Supporting these farmers with sustainable practices and fair wages is crucial.

He added, “It is entirely fitting that we are here to actually celebrate the partnership with Johnvent, the leading player… in the Nigerian cocoa processing in an export sector.” He emphasized the goal of developing the broader sector and fostering more companies like Johnvent.

Chijiutomi expressed pride in the partnership with Johnvent, stating that it would enhance Nigeria’s trade balance and global effectiveness through increased exports. He concluded, “This investment underscores our commitment to financing critical sectors that support growth and backing ambitious, indigenous Nigerian grown and led businesses who often actually face the challenges of accessing the right type of capital”.

Executive Director of the Cocoa Research Institute of Nigeria, Patrick Adebola, expressed his enthusiasm regarding the$40.5 million funding agreement, emphasizing its significance for Nigeria’s cocoa industry.

He stated, “This is a remarkable development, not just for Johnvent but for our country as a whole.” He highlighted that the investment will positively impact the cocoa sector, which is a crucial cash crop alongside coffee, cola, and tea.

He noted Nigeria’s position as the fourth largest cocoa producer globally, trailing Ghana, Côte d’Ivoire, and Indonesia, with an annual production of approximately 350,000 metric tons.

Adebola pointed out that farmers are currently benefiting from high cocoa prices, which have surged from about $1,800 per ton last year to between $8,000 and $12,000 today.

Adebola stressed the importance of sustainability in cocoa production and the need for value addition. He provided an example of how transforming cocoa into chocolate can significantly increase its value—from $1 for 1 kg of cocoa to $15 for chocolate.

He commended Johnvent for its efforts in adding value to cocoa products and emphasised the potential for improving the livelihoods of approximately 300,000 smallholder farmers through sustainable practices.

He also addressed the disparity in production efficiency between Nigeria and Ghana, noting that while Nigeria has 1.4 million hectares dedicated to cocoa farming, it produces only 340,000 metric tons, compared to Ghana’s 900,000 metric tons from 1.15 million hectares. He advocated for improved agricultural practices and the introduction of new varieties to enhance yields without expanding farmland.

Adebola concluded by expressing optimism that this funding would lead to transformative changes in the cocoa industry and improve the lives of farmers and their families across Nigeria.