In a strategic move aimed at bolstering Nigeria’s agricultural sector, the British International Investment (BII) has unveiled plans to inject a $15 million equity investment into Valency International, a Singapore-based agricultural commodities trading house.
This was announced on Tuesday as a means to fuel the expansion of processing and warehouse infrastructure within Nigeria.
This groundbreaking investment, though subject to regulatory approval, signifies a considerable leap forward for Valency International and the agricultural landscape in Nigeria.
The transaction, slated for completion in early 2024, not only highlights BII’s commitment but also carries the option for an additional $35 million equity investment within two years of the initial funding.
The positive impact of this financial support is far-reaching, promising to create up to 2,800 jobs for low-income workers across the nation.
Furthermore, it is anticipated to facilitate market access for approximately 60,000 smallholder farmers, subsequently elevating agricultural output and export capabilities.
The funds allocated by BII will be instrumental in developing new facilities for Valency, fostering partnerships with local farmers and processing centers to optimize output and ensure a stable supply of high-quality products.
Despite agriculture being a pivotal contributor to Nigeria’s GDP, accounting for a quarter of the total, the food processing and manufacturing segments remain underdeveloped.
Recognizing this gap, BII, as the primary institutional investor in Valency, aims to offer valuable support in business integrity, Environmental and Social Management Systems, job quality improvement, gender inclusion, and overall value creation.
Commenting on the investment, UK Deputy High Commissioner Jonny Baxter expressed excitement about enhancing Nigeria’s food processing capabilities, which, in turn, will contribute to job creation nationwide.
Benson Adenuga, Head of Office and Coverage Director, Nigeria for BII, emphasized the strategic opportunity to catalyze growth in Nigeria’s food and agricultural sector, fostering economic development and facilitating international trade.
Valency International’s CEO, Mr. Sumit Jain, highlighted the careful selection of BII as a partner, citing their shared commitment to substantial and impactful investments in Nigeria’s burgeoning agricultural domain.
