Cardinal Torch pivots to agro-processing, raises N10 billion in Series 1 CP

Indigenous commodity trader Cardinal Torch Company Limited has announced plans to transition into a full-fledged agro-processing in a strategic shift to capture higher margins along Nigeria’s agricultural value chain.

The move comes as key private sector players push to curb Nigeria’s heavy economic losses caused by exporting unprocessed agricultural commodities like cocoa, cashew, sesame, and soybean to Asia and Europe.

Speaking at a media parley on the company’s industry outlook in Lagos on Friday, David Oladunjoye Olurin, Managing Director/CEO of Cardinal Torch, revealed that the transition is part of a long-term strategy to build a legacy organization aimed at an eventual public listing.

What they are saying

According to Olurin, as part of its capital market entry, Cardinal Torch recently issued a N10 billion Series 1 Commercial Paper (CP), which recorded a 100% subscription rate.

• “The journey into the capital market has started. We went into the market for N10 billion and we came out for N10 billion… What we are creating is a legacy organization that will outlive its founders,” Olurin stated.

Olurin said Nigeria’s next phase of agricultural development should focus on processing rather than commodity exports.

• “This is why we have decided that the next phase of the company is to start processing and value addition,” he said.

He noted that the company, which began operations in 2020 as a commodity exporter, is expanding into agro processing and manufacturing across cashew, soybean and cocoa value chains as part of efforts to retain more value within Nigeria.

According to him, the company is completing a 10 tonne per day cashew processing plant in Ishagamu, Ogun State, that will convert raw cashew nuts into semi processed and ready to eat products.

Stakeholders seek policy support

Industry participants at the event identified weak regulation, infrastructure deficits, unreliable electricity supply, high logistics costs and policy uncertainty as key constraints limiting Nigeria’s agro processing sector.

Olurin called for the establishment of commodity boards to improve coordination across agricultural value chains, monitor pricing and provide greater market stability.

• “We need to create an efficient commodities board that cuts across all commodities. That board will have powers to monitor and coordinate how the industry should work,” he said.

He added that manufacturers must also adopt diversified energy strategies to reduce dependence on unstable electricity supply while government addresses infrastructure challenges.

Also speaking, Head of Business Development and Commercial at Cardinal Torch, Ndutimobong Sunday, said Nigerian processors face significantly higher operating costs than international competitors despite purchasing commodities at similar prices.

• “You are buying commodities in Nigeria at the same price somebody in Vietnam is buying, but after processing, you realise you are barely competing because your costs are higher,” she said.

She urged the government to introduce incentives that reduce production costs and encourage more private sector investment in local processing.

Sunday also highlighted the growing importance of traceability and sustainability standards in international agricultural trade.

Chief Technical Officer Emmanuel Mshelia said Nigeria currently captures only a fraction of the value generated from commodities such as cashew because much of the raw produce is exported to countries including India and Vietnam for processing.

• “We intend to plug that gap, because when we add value from raw materials to finished products, we retain more value within Nigeria,” he said.

He added that increased investment in processing would strengthen Nigeria’s non oil exports, improve food security, create employment opportunities and deepen industrialisation.

What you should know

Data from the National Bureau of Statistics (NBS) shows that agricultural products contributed 41.04% of total non-oil exports in 2025, highlighting the strong role of agriculture in Nigeria’s export performance, with exports driven primarily by cocoa, which accounted for 24.61% of total non-oil exports.

• According to the Nigerian Export Promotion Council (NEPC), Nigeria’s non-oil export volume also rose to 8.02 million metric tonnes in 2025, up from 7.29 million metric tonnes in 2024, representing a 10% increase.

This indicates that the growth in exports was driven not only by higher prices, but also by larger quantities shipped to international markets.