The British International Investment (BII), the United Kingdom’s development finance institution and impact investor, has finalized plans to inject $15 million in equity into Valency International, a Singapore-headquartered agricultural commodities trading house.
The investment, aimed at expanding processing and warehouse infrastructure in Nigeria, is contingent on regulatory approval and is anticipated to conclude in early 2024.
BII, in its announcement on Tuesday, disclosed that beyond the initial $15 million commitment, it retains the option to invest an additional $35 million in equity into Valency within two years of the initial investment’s completion.
This financial support is projected to generate up to 2,800 jobs for low-income workers nationwide, extend market access to an additional 60,000 smallholder farmers, and elevate agricultural output and exports.
The statement from BII underscores that the investment will fortify Valency’s facilities, fostering collaborations with local farmers and processing centers to optimize output and ensure a consistent supply of high-quality products.
Despite agriculture constituting a significant portion of Nigeria’s economy, accounting for a quarter of the GDP and employing over a third of the population, the local agricultural sector faces challenges in underdeveloped food processing and manufacturing.
BII, as Valency’s inaugural institutional investor, is poised to provide invaluable support in cultivating best practices in business integrity and Environmental and Social Management Systems.
The collaboration aims to enhance job quality, promote gender inclusion, and augment value creation within the sector.
Commenting on the investment, Jonny Baxter, the UK Deputy High Commissioner, highlighted the UK’s commitment to sustainable agriculture in Nigeria, emphasizing the positive impact on greenhouse gas emissions, climate adaptation, livelihoods, and nutrition.
He expressed excitement about the new UK investment, anticipating job creation nationwide and reinforcing support for Nigeria’s agricultural sector.
Benson Adenuga, Head of Office and Coverage Director, Nigeria for BII, emphasized the strategic opportunity to stimulate growth in Nigeria’s food and agricultural sector, leveraging its substantial food export potential.
Adenuga expressed pride in deepening the commitment to food security, smallholder farmers, and job creation, envisioning the catalytic capital’s significant impact on economic development.
Sumit Jain, CEO of Valency International, underscored the meticulous selection of partners for the next phase of growth, citing BII’s impressive engagement in relevant regions.
He expressed privilege in Valency driving BII’s impact agenda in Nigeria’s flourishing food and agriculture sector, emphasizing the strategic alignment between the two entities.
