British International Investment to Invest $15m in Valency International for Nigeria’s Agricultural Infrastructure Expansion

The British International Investment (BII), the United Kingdom’s development finance institution, has revealed its plan to inject $15 million in equity into Valency International, a Singapore-based agricultural commodities trading house.

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This investment aims to support the expansion of processing and warehouse infrastructure in Nigeria.

BII, in a statement on Tuesday, outlined that the transaction is contingent on regulatory approval and anticipates completion in early 2024.

Alongside the initial $15 million commitment, BII retains the option to invest an additional $35 million in equity into Valency within two years of the initial investment’s completion.

The injection of funds is expected to generate up to 2,800 jobs for low-income workers nationwide, provide market access for around 60,000 smallholder farmers, and enhance agricultural output and exports.

The new facilities funded by BII will strengthen collaborations with local farmers and processing centers, optimizing output and ensuring a more consistent supply of high-quality products.

Despite agriculture being a vital contributor to Nigeria’s economy, accounting for a quarter of the total GDP and employing over one-third of Nigerians, the local agricultural sector’s food processing and manufacturing remain underdeveloped.

BII aims to provide value-added support to Valency, developing best practices in business integrity and Environmental and Social Management Systems.

The partnership also aims to improve job quality, gender inclusion, and value creation.

UK Deputy High Commissioner Jonny Baxter expressed excitement about the investment, stating that it aligns with the UK’s sustainable agriculture work in Nigeria, contributing to greenhouse gas emission mitigation, climate adaptation, livelihood strengthening, and improved nutrition.

Benson Adenuga, the Head of Office and Coverage Director for BII in Nigeria, emphasized the strategic opportunity to drive growth in Nigeria’s food and agricultural sector, leveraging its significant food export potential.

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He underscored BII’s commitment to food security, supporting smallholder farmers, and facilitating economic development through job creation, industrialization, and international trade.

Valency International’s CEO, Sumit Jain, highlighted the careful selection of partners for the growth phase, expressing privilege in collaborating with BII to drive impactful initiatives in Nigeria’s expanding food and agriculture sector.