Julius Berger exits agro-processing, leases cashew plant to Eko Organic Foods

Julius Berger Nigeria Plc has announced it is stepping back from direct agro-processing operations by leasing its cashew processing plant to Eko Organic Food Industries Limited. The decision, revealed in a regulatory filing to the Nigerian Exchange (NGX), reflects the construction giant’s plan to streamline operations and sharpen its focus on its core construction business.

According to the filing signed by company secretary C.E. Madueke, Julius Berger’s board approved the lease arrangement at a meeting held on September 24, 2025. The move marks a strategic shift for the company, which first ventured into agro-processing five years ago as part of a diversification drive.

The lease agreement, reached on mutually agreed terms, will allow Eko Organic Food Industries to take over operations of the facility while ensuring continuity in Julius Berger’s agro-processing venture. In its statement, the company said the arrangement would keep it strategically aligned with emerging opportunities in the agriculture sector without diluting its primary focus on construction.

“The goal of the Board of Directors and the Executive Management of Julius Berger remains to deliver on the strategy of maintaining and strengthening the company’s competitive advantages in the construction sector, and any other sector it ventures into,” the company explained. Julius Berger also expressed confidence that the market would view the lease positively, describing it as a sign of its commitment to repositioning and regional expansion.

Commissioned in 2022, the cashew plant was Julius Berger’s first agro-processing facility and the cornerstone of its diversification efforts. Industry analysts say the lease signals a recalibration of the company’s business strategy, prioritizing its long-standing dominance in construction while still keeping a foothold in agriculture through partnerships.

source: The cable