Julius Berger Nigeria Plc has formally stepped back from its foray into agro-processing, approving the lease of its cashew nut processing facilities to Eko Organic Food Industries Limited, in a strategic move that signals the engineering giant’s renewed focus on its construction core.
The decision, endorsed at the company’s board meeting of September 24, 2025, effectively marks the end of Julius Berger’s five-year experiment in agriculture.
The company had first announced in 2020 its intention to diversify into agro-processing, a venture that led to the establishment of cashew facilities aimed at expanding its revenue base beyond civil engineering and infrastructure projects.
Strategic refocus on core strengths
The Board explained that leasing the facilities aligns with Julius Berger’s broader corporate strategy of concentrating resources on strengthening its competitiveness in construction while still extracting value from ancillary ventures.
By ceding operational control to Eko Organic Food, a company whose core expertise is agro-processing, Julius Berger ensures continuity of the cashew business while streamlining its focus.
“The goal of the Board of Directors and Executive Management 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 said in its corporate disclosure filed to the Nigerian Exchange (NGX) on Thursday.
Market watchers interpret the move as a pragmatic retreat from a non-core experiment that may have stretched the company’s capacity at a time of heightened demand for infrastructure delivery in Nigeria and across the region.
Implications for shareholders and the market
While the financial terms of the lease agreement were not disclosed, analysts say the deal underscores Julius Berger’s ability to unlock value from its assets without incurring the risks of operating outside its principal area of expertise.
Leasing out the cashew facilities, they argue, frees up capital and management bandwidth for expansion in Julius Berger’s dominant construction segment, which remains central to Nigeria’s infrastructural development drive.
“This is a smart pivot,” said Mr. Aruna Kebira, the CEO of Globalview Capital Ltd. “Agro-processing was an ambitious diversification, but with rising infrastructure projects in transport, housing, and energy, Julius Berger’s competitive advantage clearly lies in construction. Offloading the cashew operations allows them to double down on what they do best,” Mr. Kebira added.
For Eko Organic Food Industries, the agreement represents a major win. With an established facility now under its control, the company is positioned to deepen its footprint in the cashew value chain, a segment with significant export potential.
Looking Ahead
Julius Berger emphasized that the move does not signal a wholesale withdrawal from exploring new ventures but rather a disciplined recalibration of its strategy. The Board reiterated its commitment to scanning the Nigerian and regional markets for opportunities that complement, rather than dilute, its brand and market leadership.
As investors absorb the announcement, the company is banking on the market’s favorable reaction to what it frames as a judicious balancing of ambition with prudence.
Highlight of Julius Berger’s diversification and refocus
- 2020 — Board approved diversification into agro-processing; cashew processing facility project announced.
- 2021–2024 — Cashew nut facilities established and operations tested, complementing construction revenues.
- 2025 — Board approved lease of cashew nut facilities to Eko Organic Food Industries Limited.
- Core earnings segments — Civil engineering, infrastructure, and building projects continue to dominate Julius Berger’s revenue streams.
- Cashew Facility Legacy — Built to support Nigeria’s agro-export drive, now transferred to a specialist operator for sustained value creation.
