Nigeria’s agricultural sector receives $15 million from the UK.

The British International Investment, an impact investor and development finance organisation based in the United Kingdom, has completed plans to invest $15 million in equity into Valency International, a trading house for agricultural commodities with its headquarters in Singapore.

The fund will be used for the development of processing and warehousing infrastructure in Nigeria, according to a statement released by BII on Tuesday.

The organisation states that the transaction is anticipated to close in early 2024, subject to regulatory approval.

According to the company, within two years of finishing its first investment, BII has the option to contribute an additional $35 million in equity to Valency, on top of its $15 million commitment.

Up to 2,800 jobs for low-income workers nationwide will be created by the support. Additionally, it will increase agricultural output and exports and indirectly give 60,000 more smallholder farmers access to the market. The BII-funded new Valency facilities will fortify collaborations with nearby farmers and processing facilities to optimise their yield and furnish a more steady stream of high-grade products, according to a portion of the statement.

A quarter of Nigeria’s GDP comes from agriculture, which employs over one-third of the country’s workforce and is a major contributor to the country’s economy, but food processing and manufacturing are still underdeveloped in the country’s agricultural sector, according to BII.

“Agriculture’s largest segment, crop production, generates approximately 87.6% of the industry’s total output. Being Valency’s first institutional investor, BII will offer value-added support to the business as it develops best practices for environmental and social management systems and business integrity. He stated, “We will collaborate closely to raise value creation, increase gender inclusion, and improve job quality.

“The UK’s sustainable agriculture work in Nigeria helps to not only mitigate greenhouse gas emissions and adapt to a changing climate, but also strengthens livelihoods and improves nutrition, supporting food security and poverty alleviation,” UK Deputy High Commissioner Jonny Baxter said in remarks about the investment. I’m happy to welcome this new investment from the UK to strengthen Nigeria’s food processing industry, which will lead to job creation throughout the country. We’re excited to keep assisting Nigeria’s agricultural industry and the chances it presents for the country’s economic development, according to Baxter.

“The strategic opportunity to catalyse growth in Nigeria’s food and agricultural sector should be seized and offers the chance to leverage its immense food export potential,” stated Benson Adenuga, Head of Office and Coverage Director, Nigeria for BII, in a statement that was also made. We are pleased to strengthen our support for Nigeria’s smallholder farmers and food security while generating jobs that promote industrialization and ease trade between the country and other countries. We are excited to work with Valency as a partner, and we anticipate the important influence and economic growth that our catalytic capital will foster,” Adenuga said.