Julius Berger Nigeria has leased its cashew processing facilities to Eko Organic Food Industries Limited, in a move the construction giant says will allow it to sharpen its focus on its primary operations while still retaining a foothold in the agro-processing sector.
In a regulatory filing to the Nigerian Exchange (NGX), signed by company secretary C.E. Madueke, Julius Berger confirmed that the decision was endorsed by its board at a meeting held on 24 September. The company described the lease agreement as one reached on “mutually agreed terms” and framed the development as part of its broader strategy to streamline operations and reposition for regional expansion.
The decision comes five years after Julius Berger first signalled its intention to diversify into agro-processing, with the commissioning of its cashew plant in 2022 marking a significant step into a new line of business. At the time, the company said the venture was aimed at exploring opportunities beyond construction and tapping into Nigeria’s agricultural potential.
Under the new arrangement, Eko Organic Food Industries will take over the running of the facility, while Julius Berger retains strategic alignment with the industry through the lease structure. The company said this would ensure continuity for the agro-processing arm and preserve value for stakeholders, even as it strengthens its focus on its core construction and infrastructure portfolio.
“By entering into this agreement, Julius Berger remains strategically positioned to benefit from opportunities in agro-processing while enhancing its commitment to its core business areas,” the filing stated.
The company added that it expects the market to view the development positively, describing it as a pragmatic step that underscores its commitment to repositioning and sustaining growth.
Industry observers see the move as a reflection of Julius Berger’s effort to balance diversification with operational discipline, ensuring that expansion into new sectors does not dilute its long-established strengths in engineering and construction.
