UK Commits $15m to Nigeria’s Agric Sector

The British International Investment, the United Kingdom’s development finance institution and impact investor, has concluded plans to invest $15m in equity into a Singapore-headquartered agricultural commodities trading house, Valency International.

Announcing this in a statement on Tuesday, BII said that the fund was for the expansion of processing and warehouse infrastructure in Nigeria.

According to the organization, the transaction is subject to regulatory approval and is expected to close in early 2024.

The firm said in addition to its commitment of $15m, it also has the option to invest a further $35m in equity into Valency within two years of completion of its initial investment.

It explained that the support will create up to 2,800 jobs for low-income workers across the country.

It will also provide market access indirectly to a further 60,000 smallholder farmers and boost agricultural output and export.

The new Valency facilities, funded by BII will reportedly strengthen partnerships with local farmers and processing centres to maximize their output and provide a more stable supply of premium-quality products.

The BII added that despite agriculture being a key contributor to Nigeria’s economy, accounting for a quarter of the total gross domestic product, and employing more than one in three Nigerians, food processing and manufacturing remained underdeveloped in the local agricultural sector..

Speaking on the investment, UK Deputy High Commissioner, Jonny Baxter, said “The UK’s sustainable agriculture work in Nigeria helps to not only mitigate greenhouse gas emissions and adapt to a changing climate, but strengthens livelihoods and improves nutrition, supporting food security and poverty alleviation.

He expressed excitement to welcome the new UK investment to help enhance Nigeria’s food processing capabilities, which will create jobs across the nation.

He also expressed optimism that the UK will continue to support Nigeria’s agriculture sector and the opportunities this provides for its economic growth.

Also speaking, the Head of Office and Coverage Director, Nigeria for BII, Benson Adenuga, noted that the strategic opportunity to catalyze growth in Nigeria’s food and agricultural sector should be seized and offers the chance to leverage its immense food export potential.

He expressed pride for the opportunity to deepen Nigeria’s commitment to food security and smallholder farmers in Nigeria while creating jobs that enable industrialization and facilitate regional and international trade