Supporting climate resilient cocoa in Nigeria

Imagine the potential of a business poised to increase climate resilience, facilitating a more inclusive and productive cocoa industry in Nigeria. Johnvents Industries Ltd (JVI) aspires to achieve this, with a mission to become Nigeria's leading sustainable, deforestation-free cocoa processing company.

Challenges and need for adaptation

The cocoa sector in Nigeria faces similar challenges to other West African cocoa countries, such as: climate change, unsuitable soils, potential spread of disease, inefficient farming practices, and weak governance and business systems. These issues lead to low yields and inefficiencies, and require significant adaptation.

DFCD partnership with JVI

To address these challenges, the Dutch Fund for Climate and Development (DFCD) is partnering with JVI to de-risk their business. This partnership seeks to scale JVI's operations while preventing deforestation and enhancing the resilience of smallholder farmers and local communities.

Approval of cocoa business proposal in Nigeria

The DFCD Origination Facility's Investment Committee has approved a proposal to support JVI in scaling up the deforestation-free cocoa sector in Nigeria. This investment proposal will enable JVI to become a leading sustainable cocoa processing company, de-risking planned investments in the sustainable cocoa value chain, and expanding the reach of its Rainforest Alliance certification and climate benefits.

SNV's commitment

In light of this, SNV intends to sign a €425,000 grant funding agreement with JVI to support the final development of the investment proposal. Additionally, SNV will provide a technical assistance package.

Project outputs

The origination project will yield the following outputs: 

• Multi-stakeholder engagement 

• Baseline assessment of farmlands 

• ESG & GESI Assessments 

• Identification of climate-smart practices for cocoa and development of training modules 

• Model farm piloting 

• Commercial and technical due diligence and preparation of a business plan 

   

Expected outcomes 

The investment proposal aims to achieve the following outcomes: 

• 30,000 hectares of sustainably managed farmland, improving resilience to climate change 

• 300 direct additional jobs 

• 705,000 beneficiaries, including 37,500 from vulnerable groups