British International Investment Invests $15 Million Into Nigeria’s Agricultural Sector

British International Investment (BII) recently announced its plan to sign a contract valued at $15 million with a Singapore-headquartered agricultural commodities trading house, Valency International. 

This was announced in a statement on Tuesday, where British International Investment (BII) said that the fund was for expanding processing and warehouse infrastructure in Nigeria.

The statement partly reads,

The support will create up to 2,800 jobs for low-income workers nationwide. It will also indirectly provide market access to another 60,000 smallholder farmers and boost agricultural output and exports. The new Valency facilities, funded by BII, will strengthen partnerships with local farmers and processing centers to maximize their production and provide a more stable supply of premium-quality products.

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

Adding to the $15 million funding, the UK’s development finance institution (DFI) and impact investor said it has the option to invest $35 million in equity in Valency within two years of the completion of its initial investment.

British International Investment (BII) stated that even though agriculture continues to be a top contributor to the Nigerian economy, contributing to a quarter of the total gross domestic product and creating more jobs for one out of three Nigerians, the manufacturing sector remains underdeveloped in the local agricultural industry.

The company stated, 

• Crop production is the largest segment within agriculture, accounting for about 87.6 percent of the sector’s total output. As the first institutional investor in Valency, BII will provide value-added support to the company in developing best practices in business integrity and Environmental and Social Management Systems. Both parties will work closely to improve job quality, gender inclusion, and value creation.

Speaking on this, the UK Deputy High Commissioner, Jonny Baxter, said,

• The UK’s sustainable agriculture work in Nigeria helps mitigate greenhouse gas emissions and adapt to a changing climate. It also strengthens livelihoods and improves nutrition, supporting food security and poverty alleviation.

Adding to this, Head of Office and Coverage Director, Nigeria for BII, Benson Adenuga, in a statement, also said: 

• The strategic opportunity to catalyze growth in Nigeria’s food and agricultural sectors should be seized and offer the chance to leverage its immense food export potential. We are proud to deepen our commitment to food security and smallholder farmers in Nigeria while creating jobs that enable industrialization and facilitate regional and international trade.

Commenting on this, the CEO of Valency International, Mr. Sumit Jain, said,

• We have been careful and deliberate in choosing partners for our next growth phase. While various investor groups have approached us, we decided to partner with BII as we have been impressed by BII’s engagement with the regions where we have committed to investing substantially over the medium term. It is equally privileged that BII has chosen Valency to drive its impact agenda in Nigeria's growing food and agriculture sectors.