By Chinyere Anyanwu 

Singapore’s private sector will play a critical role in improving the livelihoods of thousands of smallholder farmers and lowering greenhouse gas (GHG) emissions in Nigeria, following the construction of a new warehouse and processing complex for agricultural commodities in the country.

IFC, the largest global development institution focusing private sector in emerging markets, has agreed to issue $18 million in debt financing to Robust International Pte. Limited, a Singapore-based agricultural company with operations across the Asia-Pacific region and sub-Saharan Africa. Founded in 2006, Robust primarily trades in specialty crops such as cashews, sesame, ginger, and gum arabic, among others.

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¡¡The company will use proceeds from the loan to build modern warehouses and processing facilities in northern Nigeria, and the financing is one of the first investments in modern secondary sesame processing in that region. The project will improve smallholder farmers’ access to modern storage and processing facilities, while allowing Robust to increase direct sourcing volumes with smallholder farmers. The storage facilities will relieve farmers of the need to store their own crops in often poor conditions, which leads to high post-harvest losses and unnecessary GHG emissions related to spoiled food, which account for around 5 per cent of Nigeria’s total GHG emissions.

The financing package consists of a senior secured loan of up to $9 million from IFC’s own account, as well as a concessional loan of up to $9 million from IFC acting as the implementing entity of the International Development Association’s Private Sector Window.

“Robust is committed to empowering farmers and enriching local communities and has followed and encouraged sustainable farming practices,” said Naarayan Raaghavan, Chairman and Managing Director of Robust. “We are very pleased to work with IFC on this project, which will provide employment opportunities to the local community while significantly contributing to Nigeria’s economic growth and value addition in the country’s supply chain. The project also involves a deeper engagement with smallholder farmers by supporting them in the adoption of sustainable farming methodologies while encouraging and training them to work towards creating awareness on matters pertaining to environmental preservation, as well as contributing to their overall economic wellbeing.”