The British International Investment (BII), the United Kingdom’s development finance institution and impact investor, has announced a strategic investment of $15 million in equity into Valency International, a Singapore-headquartered agricultural commodities trading house. This initiative aims to boost the expansion of processing and warehouse infrastructure in Nigeria, contributing to the growth of the agricultural sector.

Investment Details:

• The $15 million investment by BII will support the expansion of processing and warehouse infrastructure in Nigeria through Valency International.
• The transaction is subject to regulatory approval and is expected to close in early 2024.
• BII has the option to invest an additional $35 million in equity into Valency within two years of completing its initial investment.

Expected Impact:

• The investment is anticipated to create up to 2,800 jobs for low-income workers across Nigeria.
• Indirectly, it will provide market access to approximately 60,000 smallholder farmers, fostering agricultural output and export.
• The newly funded Valency facilities will strengthen partnerships with local farmers and processing centers to maximize output and ensure a stable supply of premium-quality products.

Challenges in the Agricultural Sector:

• Despite agriculture’s significant contribution to Nigeria’s economy, with a quarter of the GDP and employing over one in three Nigerians, the food processing and manufacturing sectors remain underdeveloped.
• Crop production, accounting for 87.6% of the sector’s total output, highlights the need for investment in processing capabilities and value addition.

Focus Areas for Improvement:

• BII aims to provide value-added support to Valency, focusing on developing best practices in business integrity and Environmental and Social Management Systems.
• Collaboration will emphasize improving job quality, promoting gender inclusion, and enhancing overall value creation.

UK Deputy High Commissioner’s Perspective: UK Deputy High Commissioner, Jonny Baxter, highlighted the positive impact of sustainable agriculture work in Nigeria. The investment aims to strengthen livelihoods, improve nutrition, and contribute to food security and poverty alleviation.

BII’s Commitment to Nigeria’s Agricultural Growth: Benson Adenuga, Head of Office and Coverage Director, Nigeria for BII, expressed the organization’s commitment to catalyzing growth in Nigeria’s food and agricultural sector. The investment aligns with BII’s dedication to supporting food security, smallholder farmers, and economic development.

Valency International’s CEO Perspective: Valency International’s CEO, Sumit Jain, emphasized the careful selection of partners for the next phase of growth. The collaboration with BII reflects a shared commitment to driving impact in Nigeria’s growing food and agriculture sector.

Conclusion: The $15 million investment by BII into Valency International signals a significant step toward enhancing Nigeria’s agricultural sector. This strategic partnership aims to address challenges, create employment opportunities, and contribute to the overall development of the country’s food and agricultural landscape. The positive impact is expected to resonate across the value chain, benefiting farmers, workers, and the Nigerian economy.