High financing costs still biggest hurdle to scaling agric processing, says Johnvents GMD John Alamu

High financing costs remain the biggest barrier to scaling agricultural processing in Nigeria, John Alamu, Group Managing Director of Johnvents Group, has said. Alamu spoke on the sector’s constraints and Johnvents’ expansion from farmer aggregation into cocoa processing, food manufacturing and commodity trading.

The company now runs two cocoa-processing facilities in Akure and Ile-Oluji with a combined annual capacity of 48,000 metric tonnes. It plans to raise capacity to 60,000 metric tonnes annually by 2030.

From aggregation to processing

Johnvents began in 2014 with a goal to help smallholder farmers access training, inputs, finance and reliable markets. In 2016, it incorporated as Johnvents Consulting Limited and became a trading company, aggregating what farmers produced and selling it to offtakers. Between 2016 and 2020, it moved into large-scale trading and built farmer networks and aggregation hubs across Nigeria.

“The defining shift came in 2021, when we decided to stop only moving commodities and start processing them,” Alamu said. That year, Johnvents acquired the 18,000-metric-tonne Coop Cocoa Factory, which became Johnvents Industries Limited, and commissioned its own cocoa factory in Ondo State. It reached 5,000 tonnes processed within six months and launched the Cocoa Farmers Empowerment Programme with a target of reaching 150,000 farmers by 2030.

Certification, acquisitions and new units

In 2022, Johnvents earned Rainforest Alliance certification, introduced locally packaged pure cocoa powder, began exporting from Akure to Europe and North America, and founded its logistics arm, Haven Hauling. In 2023, it acquired Premium Cocoa Products in Ile-Oluji, described as Nigeria’s oldest cocoa processor. The deal raised combined annual cocoa-processing capacity to 48,000 metric tonnes. It also expanded its trading portfolio to more than 25 commodities and launched Johnvents Foods.

In 2024, Johnvents established Johnvents DMCC in Dubai as its international trading hub and set up Noble-Eagle Industries, broadening its presence in edible oils, feed, water and seasoning. It also became Nigeria’s largest sesame exporter.

Value chain and export focus

Alamu said the strategy is to own as much of the value chain as possible. “We want to own as much of the value chain as we can,” he said. The model rests on three pillars: Agri & Agro-Allied, FMCG and Logistics. Beyond cocoa, Johnvents participates in cashew, sesame, soybeans, legumes, edible nuts, rice and rubber. Its downstream businesses produce consumer foods, edible oils, animal feed, seasoning and water. About 75% of Group revenue is linked to exports. Cocoa processing and commodity trading are the established core, while FMCG and Logistics broaden the revenue base.

The two cocoa plants produce cocoa liquor, butter, cake and powder for chocolate, confectionery, beverages and other products. For Nigeria, the push matters because continued reliance on raw commodity exports limits the value the country captures from agricultural production. Local processing can retain more value, create jobs and boost export earnings, the company said.