Strengthening Non-oil Export

Nigeria’s long-standing quest for agricultural self-sufficiency, industrial growth and greater employment opportunities for her teeming youths and women, has received a boost with the inauguration of a new supply chain complex by Valency Agro Allied Nigeria Limited, Raheem Akingbolu reports.

Valency Agro Nigeria Limited, the third-largest non-oil exporter in Nigeria, has braced the odds and fulfilled its business projection of raising the bar in Agribusiness sector with the commissioning of a state-of-the-art supply chain complex in Ibadan, Oyo State, to enhance its operations.

According to the company, the inauguration of the supply chain and other developmental moves by the company, was informed by the  equity acquisition in its parent company, Valency International Group, by British International Investment (BII), a Development Finance Institute and impact investment organization owned by the UK government.

British International Investment was said to have injected an initial $15 million into Valency International Group, a Singaporean-based agricultural commodities trading house, with an option to invest an additional $35 million within two years of the initial investment.

As a subsidiary of Valency International, Valency Agro Nigeria Ltd recently assured stakeholders that it had concluded to expand its operations, construct more warehousing facilities, and enhance the processing of raw cashew nuts into high-quality cashew kernels for export.

Additionally, the investment aims to bolster the company’s ability to address sustainability concerns within its operations and value chain, particularly focusing on social and environmental considerations.

For the leading international conglomerate that is involved largely in food processing and value addition, the commissioning of its supply chain complex at a colourful and well-attended ceremony in the Oyo State capital was the peak of its strategic growth mechanism in the first quarter of 2024.   

The event, which was held at Elebolo village along the Lagos- Ibadan Expressway on the outskirts of  Ibadan, the Oyo State capital, was graced by a cross-section of dignitaries drawn from industry, government, the diplomatic community, representatives of the local community, the media and the general public.

Representatives of the British International Investment (BII), a leading partner with the Valency Group on this project, as well as those of over a dozen Nigerian commercial and development banks involved in its funding, were also present at the occasion.  

Perhaps to demonstrate the the enduring bilateral relationship between the Federal Republic of Nigeria and  the United Kingdom and India, the national anthems if the tree countries were renditioned to the admiration of invited guests. 

In his welcoming remarks, the Group Chairman of the Valency Group, Mr. Praveen Kumar Jain, described the occasion as the culmination of a dream that took concrete shape back in 2022 and was pursued with extraordinary vigour, passion and commitment.  

This ceremony, he  said, was a natural progression from its activities, which has seen the company establish its footprint in 34 states across Nigeria. When fully operational, he disclosed, the supply chain complex would employ over 10, 000 persons – over 60% of whom would be female and many of whom would be drawn from the immediate catchment area.  

Kumar Jain also listed  other expected benefits of the complex as follows: increased export revenue for Nigeria; a far-reaching value-add profile for a wide range of agricultural produce;   import-substitution for   agro-chemicals; skill development and professional growth opportunities for workers; sustainable procurement processes; more robust participation in the value chain by farmers and suppliers; and greater impact on the integration and sustainability of the Nigerian economy.  

On his part, the Deputy High Commissioner of the UK to Nigeria, HE, Jonny Baxter, hailed the involvement of  British International Investment (BII) in the project, describing it as a veritable platform (especially for women and small holder farmers) to access the entire agricultural (processing and export) ecosystem at a go. 

Baxter used the opportunity to call on Valency Agro Nigeria Ltd., to use its expertise and resources to advance ideas aimed at enhancing nutritional awareness and high yield among Nigerians generally, and farmers in particular. 

Also speaking, the Consul-General at the Indian Consulate in Lagos, HE, Shri Chandramouli Kern, described his personal experience of Valency’s operations across Nigeria as highly inspiring – not least, he said, because of the sheer dedication of its female workers (some of whom have been with the company for almost a decade). He attributed this fidelity to Valency’s progressive business model and its prioritization of worker satisfaction. 

He also paid tribute to BII and to the banks which, he said, had risen to the occasion in such a heroic manner. 

Pastor Ighodalo, a non-executive director of the company also offered brief remarks at the occasion, describing it as an emotional homecoming to the city of Ibadan, where he was born and raised. He hailed the commissioning as an example of a mutually-rewarding co-operation between two former British colonial subjects and their former master. 

 Quoting the lyrics of Nigerian pop artist TY Bello’s *’The Land is Green,’* the clergyman asserted that Nigeria was ripe and eager for the type of foreign investment that would help her economy grow, provide jobs for her people and deepen her immense natural and human resources. 

Speeches were also made by a pair of representatives from the BII – namely Messrs Roman Frankel and Benson Adenuga, while the Group CEO of Valency,  Sumit Jain presented for recognition a roll-call of the Nigerian commercial banks whose credit helped to make this project a reality – to the admiration of the assembled guests. 

The highlight of the occasion, which was also punctuated by an energetic and highly entertaining Yoruba cultural performance, was the formal commissioning of the Supply Chain Complex by the Valency Group Chairman, Praveen Kumar Jain and other key dignitaries. This was followed by a tour of the facilities by guests.  

Another highlight of the event was the ground-breaking ceremony for the upcoming Valency  processing plant – work on which is set to begin shortly. The ground-breaking ceremony was performed by The Group Chairman, the afore-mentioned Indian and British diplomats, (Chandramouli Kern and Baxter), Pastor Ighodalo and others.  

In separate interviews during the press briefing that followed the ground-breaking ceremony, the officials of the company, as well as the two diplomats and Pastor Ighodalo all reiterated the many benefits foreshadowed by this event, as well as their expectations for the future of the company, the immediate communities around which the Complex is situated (as well as the company’s corporate social responsibility projections in the areas of healthcare and human capacity development, etc) and ways in which the government of Nigeria can enhance the influx of big-ticket foreign investments like Valency’s in the country’s economy.  

According to various speakers at the event, the newly commissioned supply chain complex would serve as a critical support system for sourcing raw agricultural materials from farm gate suppliers, processing these materials into premium-grade products, and distributing them to wholesale and retail outlets as well as end-users. This strategic initiative underscores Valency Agro Nigeria Ltd’s commitment to advancing its operations and maintaining high standards across its value chain.

Speaking about the complex, the CEO of had earlier pointed out that “Valency is an integrated supply chain company that exports and trades in diversified portfolio of agro commodities and inputs, boasting of assets that include an already established extensive global reach, excellent sourcing networks directly with farm gate suppliers and manufacturing processors, a deep origination network across the country in all major producing states for raw cashew, sesame, soybean, cocoa, ginger, and pulses.”

 With the challenge of food security in Nigeria due to lack of storage capacities, quality management infrastructure and cost of local transport in the country, players in the Agric-business space  lose a large percentage of crop annually. Through Valency’s group’s subsidiary name GSCS (Global Supply Chain Solutions) the country is planning to work on all three aspects of food security- Warehousing and quality management Services, fleet services, and clearing and forwarding services.

In May 2022, the company did a groundbreaking  by instituting 45,000 MT storage capacity of agri produce, over 150 own fleet and one of the biggest drying yards in the country.

According to a statement by the British International Investment on its website, the new investment will support value addition, create up to 2,800 jobs for low-income workers across the country and provide market access indirectly to a further 60,000 smallholder farmers and boost agricultural output and export.