• The European Union, through the European Investment Bank (EIB), granted Nigeria a €190 million ($219.5 million) credit line to strengthen financing for the cocoa and dairy sectors.
• The initiative aims to reduce lending risks, build institutional capacity, and expand long-term agricultural financing in Nigeria.
• Agriculture contributes 20% to Nigeria’s GDP but receives only 4% of total bank credit due to high perceived risks.

The European Union has approved a €190 million ($219.5 million) credit line to boost agricultural lending in Nigeria, focusing on the cocoa and dairy industries, the Federal Ministry of Budget and Economic Planning announced on October 13.

The financing, channeled through the European Investment Bank (EIB), was finalized during the second Global Gateway Forum held from October 9–10 in Brussels. The initiative is part of the EU’s broader strategy to strengthen international partnerships and sustainable investment across Africa.

The credit line seeks to increase lending capacity among Nigerian commercial banks and encourage private sector financing for agriculture. The program also targets institutional reform and risk mitigation to improve long-term access to credit.

“The goal is to reduce risks associated with agricultural lending and strengthen institutional capacity for sustainable sector financing,” said Thourayya Tricki, Director of International Partnerships at the EIB.

Tricki added that the program would not only expand access to finance but also enhance sustainability and competitiveness within Nigeria’s agricultural value chains.

Nigeria has long struggled with limited agricultural financing, due to climate risks, insufficient collateral, and weak rural banking infrastructure. Although agriculture contributes around 20% of GDP, it receives only 4% of total private bank loans, according to government data.

The situation is particularly challenging for climate-sensitive crops like cocoa. Preliminary forecasts from consultancy N’kalo predict an 11% drop in Nigeria’s 2025/2026 cocoa output, to 305,000 tonnes, due to adverse weather conditions.

The EU’s financial support aligns with Nigeria’s broader agricultural reform agenda aimed at expanding access to credit for farmers and agribusinesses.

In September 2025, the Bank of Agriculture signed a $1 billion financing agreement with the African Export-Import Bank (Afreximbank) to establish a National Fund for Smallholder Farmers.

This article was initially published in French by Stéphanas Assocle

Adapted in English by Ange Jason Quenum