Julius Berger Nigeria Plc has announced the leasing of its cashew processing facility to Eko Organic Food Industries Limited, marking a strategic step in its decision to concentrate on its core construction operations.
The company disclosed the development in a regulatory filing submitted to the Nigerian Exchange (NGX) and signed by its Company Secretary, C.E. Madueke. The decision received board approval during a meeting held on September 24, 2025.
“This lease agreement, entered into on mutually agreed terms, ensures operational continuity in agro-processing while Julius Berger retains strategic alignment with opportunities in the sector,” the statement read.
Julius Berger’s foray into agro-processing began in 2020, with the official launch of its cashew processing plant in 2022. The facility was initially seen as a key driver of the company’s diversification strategy, aiming to tap into Nigeria’s growing agricultural value chain.
However, just a few years later, the company is recalibrating.
“The goal of the Board of Directors and Executive Management remains to deliver on the strategy of maintaining and strengthening Julius Berger’s competitive advantage in construction and any other sector it may venture into,” the company stated.
By transferring operational control of the facility to Eko Organic Food Industries, Julius Berger signals its intent to remain strategically involved in agro-processing, but through a more streamlined and asset-light model.
The company expressed confidence that the market would respond positively to the development, describing the lease as part of a broader repositioning effort aimed at supporting regional expansion and sustainable business growth.
The decision reflects a growing trend among large corporations to refocus on their most profitable segments while forming partnerships to keep non-core operations viable. In Julius Berger’s case, the move is expected to enhance operational efficiency, reduce overhead, and reinforce its leadership in Nigeria’s infrastructure space.
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