UK Development Finance Institution Maintains $754m Nigeria Portfolio, Targets Energy and Agriculture
British International Investment (BII) has reaffirmed its long-term commitment to Nigeria, revealing that it currently manages an investment portfolio in the country valued at $754 million.
The United Kingdom’s development finance institution said Nigeria remains one of its most important markets globally, ranking as the firm’s fourth-largest country portfolio. BII’s investments in the country currently support 116 businesses, which collectively provide employment to more than 54,000 people.
Speaking on the firm’s strategy in a recent discussion, Chris Chijutomi, Managing Director and Head of Africa at BII, said the organisation continues to prioritise sectors that align with Nigeria’s national development goals, particularly energy, infrastructure, agriculture, and financial services.
Focus on Power and Clean Energy
Addressing Africa’s persistent electricity shortage remains central to BII’s investment approach. Chijutomi noted that nearly 600 million Africans still lack access to electricity, a challenge that continues to limit productivity across the continent.
To help bridge this gap, BII recently provided $15 million in debt funding to Starsight Energy to expand clean energy solutions for commercial and industrial customers, including several of Nigeria’s leading banks.
The financing supports the development of rural mini-grids, which are expected to provide electricity access to about 17.5 million Nigerians under the Distributed Access through Renewable Energy Scale‑up (DARES) programme.
The institution has also backed InfraCredit with a $30 million blended financing facility aimed at mobilising domestic institutional investors—such as pension funds—into renewable energy projects.
“Infrastructure is a core part of our investment thesis,” Chijutomi said, noting that BII continues to explore opportunities across power generation, transmission and distribution, areas where the organisation has built considerable expertise.
Strengthening Agricultural Value Chains
Beyond the power sector, BII is also investing heavily in Nigeria’s agricultural value chain, particularly in efforts to reduce the country’s estimated 40% post-harvest losses.
One of the firm’s most significant investments is in Indorama Eleme Fertiliser and Chemicals, which currently supplies about 80% of Nigeria’s domestic fertiliser demand. Over the past decade, BII has committed $140 million to the company, helping position Nigeria as a fertiliser exporter while supporting global food security.
Additional investments include Johnvents Group, which is expanding Nigeria’s cocoa export capacity, and Valency International, where a 2023 investment supported cashew processing facilities that benefit about 60,000 farmers.
Supporting SMEs and Inclusive Growth
Chijutomi said BII also channels funding through local financial institutions and investment funds to reach small and medium-sized enterprises (SMEs) that international development finance institutions may find difficult to serve directly.
Through this approach, the firm has established a $50 million facility, with 70% of the funding targeted at Northern Nigeria and 30% earmarked for women-owned or women-led businesses.
Reforms Boost Investor Confidence
According to Chijutomi, recent economic reforms by the Nigerian government—particularly the removal of fuel subsidies and the liberalisation of the exchange rate—are gradually improving investor sentiment.
While high inflation and currency volatility had previously discouraged some investors, he said the shift toward a market-driven exchange rate is helping create the predictability required for long-term capital deployment.
“We are starting to see commercial investors engage in looking to invest in Nigeria,” he said, adding that the renewed interest involves investors seeking opportunities in real businesses with long-term growth potential.
BII’s continued commitment is also reflected in its local operations. Over the past three years, the institution has doubled the size of its Nigeria-based team, reinforcing its on-ground presence.
“As a firm owned by the UK government, BII remains a key vehicle for strengthening the UK–Nigeria economic relationship,” Chijutomi said. “We are long-term investors and we invest across economic cycles, both in good times and challenging periods.”