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To strengthen Nigeria's agricultural sector and support the livelihoods of thousands of farmers, IFC and Johnvents Industries Limited on Wednesday announced a partnership to expand the company’s cocoa processing operations and increase its export capacity to global markets.

IFC’s $23.3 million financing package, which includes local currency funding in Nigerian naira, will allow Johnvents to expand its cocoa processing plant in Ondo State, Nigeria, and double its production capacity to up to 120 metric tons of cocoa per day, will provide steady incomes for farmers in its supply chain, according to a statement by IFC, the arm of the World Bank Group that lends to the private sector.

The financing package includes an $8.5 million loan from IFC’s own account, a $6.3 million loan equivalent in naira with support from the local currency facility of the International Development Association’s Private Sector Window, and a $8.5 million loan by the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP).

IFC said that, as part of the partnership, it will also provide advisory services to Johnvents to help the company increase women’s participation in its workforce and across its value chain. It also committed to supporting the company’s ongoing sustainability and traceability programme and advising Johnvents on enhancing efficient digitisation and sourcing of its current processing capacity of cocoa-based products, including butter, cake, and powder for chocolates, confectionaries, and health products.

To support Johnvents’ sustainability efforts, IFC said its financing package will enable the company to replace inefficient diesel generators and wood-based boilers with a new efficient power generation system that uses natural gas to produce electricity and thermal energy, resulting in fewer emissions. The system’s installation is designed to facilitate the future integration of renewable energy sources, such as solar, contributing to and directly aligned with Nigeria’s decarbonisation strategy in agriculture value chains.

“IFC’s partnership with Johnvents marks another giant step in our commitment to transform Nigeria’s cocoa sector and agriculture industry,” said John Alamu, Group Managing Director, Johnvents Industries Limited. “This support will help strengthen our operations and energise our commitment to sustainability, traceability, and inclusive growth. By doubling our production capacity and increasing export potential, we aim to deliver more value to all stakeholders and significantly contribute to the nation’s economic diversification and development.”

Makhtar Diop, IFC Managing Director, said agribusiness plays a critical role in fostering value addition and diversifying Nigeria’s economy.

Cocoa plays a crucial role in Nigeria’s agribusiness sector and the country is one of Africa’s largest producers and exporters. The financing by IFC is expected to enable Johnvents to meet higher demand and access new markets, while boosting Nigeria’s competitiveness in the global cocoa market, and increasing the country’s export earnings.

Johnvents has a target to achieve 100 percent traceable cocoa, with at least 90 percent certified, by 2027, and to improve traceability protocols for Nigeria’s cocoa produce for international markets. The Nigerian indigenous agribusiness and manufacturing group owns the Johnvents Cocoa Factory in Akure, Ondo State, Southwest Nigeria, an 18,000 MT plant with cocoa liquor, butter, cake, and powder outputs.