Valancy Agro shows why logistics will decide Nigeria’s agricultural transformation

Nigeria’s push to diversify away from oil has found its most credible anchor in agriculture. Non-oil exports are rising, processing capacity is expanding and millions of livelihoods now depend on value addition rather than raw output. The shift is real.

Valency Agro Nigeria’s experience suggests that the next phase of agricultural growth will be determined less by acreage than by execution. When logistics and processing are integrated with sourcing and export, the results can be transformative.

As one of Nigeria’s largest non-oil exporters and a leading agro-commodities and value-chain development company, Valency has built an end-to-end model that links smallholder farmers to global markets. The approach, covering aggregation, processing, warehousing, traceability, logistics and export, has expanded market access, improved price discovery and raised standards across the supply chain.

“Since establishing operations in Nigeria as part of Valency International’s global footprint across 22 countries, we have built substantial capabilities in cashew processing and FMCG production. Our cashew kernel (CKN) processing operations feature an installed capacity of 50 metric tonnes per day, positioning us as a significant player in Nigeria’s cashew value chain, Amit Bose, CFO, Valency Agro Nigeria told BusinessDay.

The company has set benchmarks in quality and sustainability. It was the first in Nigeria to receive organic certification for cashew production, signalling that Nigerian produce can meet exacting international standards when systems are designed deliberately. Investments in modern warehousing, cold-chain infrastructure, commodity traceability and export logistics underscore a broader point: agricultural competitiveness is operational, not rhetorical.

Scaling Processing, Building Brands

Since establishing operations in Nigeria as part of Valency International’s footprint across 22 countries, the company has built significant capacity in cashew processing and FMCG production. Its cashew kernel processing facility operates at an installed capacity of 50 metric tonnes per day, placing Valency among the country’s most consequential players in the cashew value chain.

Brand development has followed processing depth. Champion, Valency’s flagship FMCG brand, has gained domestic traction and is expanding across ECOWAS markets. This expansion demonstrates that Nigerian food brands can compete regionally when backed by consistency, quality and disciplined market development.

A further step change came with the commissioning of the Valency Industrial Park in Oyo State. The facility anchors the company’s next growth phase and reflects a broader commitment to domestic manufacturing. Its multi-seed, multi-oil plant in Ibadan, designed with a soybean crushing capacity of 300 metric tonnes per day, will diversify Nigeria’s processing base. It will supply edible oils to domestic and export markets while supporting thousands of farmers and creating hundreds of direct jobs.

Unlocking Underdeveloped Commodities

Beyond cashew and soy, Valency is positioning for expansion into sheanut and rubber, two commodities Nigeria produces in significant volumes but has yet to fully industrialise. Global demand for sheanut in food and cosmetics continues to rise, while rubber offers opportunities across domestic manufacturing and export markets. Applying an integrated value-chain model to these sectors could convert latent supply into durable export earnings.

Geography matters as much as commodity choice. Northern Nigeria holds vast agricultural potential, yet suffers disproportionate post-harvest losses. Valency is exploring processing facilities and aggregation centres in key northern states to bring value closer to production zones. The objective is straightforward: reduce losses, improve farmer incomes and lower logistics costs, while stimulating regional economic activity.

Investor confidence has tracked this strategy. A recent ₦13bn commercial paper issuance was oversubscribed by 18 per cent, reflecting market belief in the company’s expansion model and its emphasis on processing-led growth.

Policy, Partnerships and the Next Growth Phase

Nigeria’s agricultural processing sector stands to gain from deeper public-private collaboration. Export incentive schemes signal intent, but their impact depends on efficiency. Faster, more predictable disbursement would free capital for infrastructure, farmer support and capacity expansion, strengthening competitiveness across the sector.

Beyond incentives, the priorities are clear: rural connectivity, access to long-term finance and stable, predictable regulation. These are not sector-specific asks; they are the foundations of industrial agriculture.

International partnerships also have a role. Leveraging Valency International’s presence across Africa and Asia, the Nigerian business is exploring collaborations that enable technology transfer, advanced processing equipment and digital traceability. India, with its mature agri-technology ecosystem and growing demand for African commodities, is a natural partner. Equally important is stronger intra-African collaboration, shared infrastructure, regional processing hubs and coordinated supply chains, to reduce food imports and improve export competitiveness continent-wide.

Growth with Inclusion

Scale alone is insufficient. Valency’s expansion strategy is anchored in inclusive growth—linking farmers to markets, promoting sustainable practices and ensuring fair pricing through its Farmer Relationship Management programme. Organic certification in cashew production is emblematic of a broader commitment to environmental stewardship and international quality benchmarks.

Operational discipline extends to people and communities. Occupational health and safety standards, community engagement and carbon-footprint reduction are embedded alongside commercial objectives. Agricultural transformation, if it is to endure, must deliver jobs, particularly for youth and women, while strengthening food security and export credibility.

The Road Ahead

Nigeria’s agricultural future will be shaped by those willing to invest in systems, not slogans. Infrastructure, processing, logistics and policy coherence will determine whether today’s diversification momentum matures into sustained competitiveness.

Valency Agro Nigeria is committed to that long view, working with the government, investors, technology partners and farming communities to build resilient, inclusive and globally competitive supply chains. The opportunity is clear. The task now is execution.

Yet it remains fragile. Across the value chain, logistical bottlenecks, poor storage, weak cold chains, fragmented transport and inconsistent export handling continue to erode quality, constrain scale and blunt competitiveness.

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