How Johnvents is Changing Nigeria's Cocoa Industry

Over the years, Johnvents, part of Capitalsage Holdings, has tapped into Nigeria's agricultural potential. They have built a business that includes commodity trading and agro-processing. John Alamu, the founder and managing director of Capitalsage Holdings, talks about how Johnvents is reshaping Nigeria's agribusiness. They focus on cocoa and cashew processing, vegetable oil production, animal feed manufacturing, and other products that add value.

Mr. Alamu shares the experiences that pushed him into entrepreneurship, the struggles of getting funds and finding markets, and the company's work to improve cocoa quality. They achieve this through training farmers, promoting sustainable practices, and providing better seedlings. He also stresses the need to boost domestic cocoa production, replace old cocoa trees, and enhance agricultural processing. This will help reduce Africa's reliance on raw commodity exports.

PT: What motivated you to go into cocoa-product manufacturing?

John Alamu, founder and Group Managing Director of Capitalsage Holdings during an interview with PREMIUM TIMES (PHOTO CREDIT: Abdulkareem Mojeed)

Mr. Alamu: I began at the International Institute of Tropical Agriculture (IITA) in Ibadan. I also come from a family of educators, as my father taught agriculture. I graduated from the Federal University of Agriculture, Abeokuta. With my background, education, and experience, agriculture has always been part of my life. I worked at IITA as a monitoring and evaluation specialist, which allowed me to interact directly with farmers. At that time, our focus wasn’t just on cocoa but also on crops like cassava and maize.

During our research, farmers highlighted several issues, but two stood out: access to finance and access to markets. The usual response was more research, but I saw these problems as opportunities. I had ideas on how to turn them into businesses. That is how Johnvents got its name. We started by training farmers in good agricultural practices, buying their produce, and selling it in the market.

We then expanded into commodity trading. We supplied maize seeds and grains to internally displaced persons’ camps, supporting food security efforts by organizations like the World Food Programme and Catholic Relief Services. While starting my journey, I didn't limit myself to agriculture. I also set up a financial services company called Credit Assistants Investment Limited, which has now evolved into Capital State Technology Group.

One day, I went to Akure to promote a microfinance bank product. I ended up near our current factory in Akure, which belonged to a cocoa cooperative. They had a factory that was not functioning and needed investors. I didn't know much about the factory; it was overgrown with bushes and the machinery was in bad shape. That moment ignited my interest. I told them I was ready to buy the factory. I asked for a flexible payment plan and help with their brand. I also wanted access to human resources, including engineers for the operation. One of the engineers recommended was Engineer Gomolu, who is now our technical director.

That's how our journey began.

We got funding from the International Finance Corporation to fix the factory and buy new machines for our Akure operations. We later acquired Premium Cocoa Products in Oyo State, which added more excitement as we branched out beyond cocoa.

Today, we process cashews at our Ondo State factory, which has a capacity of 30,000 metric tonnes. We also operate 10 plants in Ondo that process cashews into kernels and shells, soybeans into oil and meal, and run an animal feed mill.

Cashew processing plants (PHOTO CREDIT: Abdulkareem Mojeed)

We have also made significant advances into fast-moving consumer goods (FMCG). We process cocoa into products like Johnvents Choco Pops, Johnvents Choco Cubes, and Johnvents chocolate, including options for children. We even have our own bottled water brand.

We are involved in all parts of the agricultural value chain: upstream, midstream, and downstream activities. Our goal is to become a truly global agribusiness that supports global food production and security. We currently work in 19 countries and want to strengthen our presence by moving from commodity trading to agricultural processing. We have talked enough about stopping the export of raw commodities. We want to build factories and change the narrative significantly.

PT: How do you ensure the quality of your raw materials, given concerns about the quality of cocoa beans sourced in Nigeria?

She'll-on Cashewnuts (PHOTO CREDIT: Abdulkareem Mojeed)

Mr. Alamu: Quality starts with primary production on the farm. Johnvents has invested a lot in a strong sustainability program. I should note that Johnvents is Rainforest Alliance-certified. This certification shows our commitment to sustainability. What do we do for farmers? We connect them to agricultural research institutions, including the Cocoa Research Institute of Nigeria (CRIN). This gives them access to improved, high-yielding varieties. Farmers no longer wait five years for cocoa trees to mature. Some varieties now mature in under three years, with some in as little as 18 months. The first step is providing farmers with quality seedlings.

Secondly, through our sustainability program, we link them to financing partners to improve access to finance. We also train them in good agronomic practices.

Currently, we work with about 40,000 farmers under our program, making it hard to work with each one individually. To manage this, we use various strategies. Some farmers are organized into cooperatives, while others are connected through local buying agents. Our farmers and local agents are certified, and our factories are recertified. Since a lot of Nigerian cocoa goes to Europe, we must follow EU regulations and sustainability rules. Our program has helped us meet these standards.

A large portion of the cocoa we handle now meets the European Union Deforestation Regulation (EUDR). This involves addressing traceability and child labor, ensuring children are not sent to farms when they should be in school. It also concerns pesticide residues in crops. Through our training, farmers learn the right pesticides to use and the proper amounts. These issues have previously made Nigerian cocoa less competitive internationally.

We can process 48,000 metric tonnes of cocoa beans. But Nigeria’s cocoa production is falling, with annual output around 300,000 metric tonnes. One challenge is that we are not just competing with other cocoa processors; we also compete with raw cocoa bean exporters. These exporters have shorter business cycles because they don’t need to store significant amounts of cocoa for long periods.

Chocolate and beverage processing and packaging plants at Johnvents Group in Ondo State. (PHOTO CREDIT: Abdulkareem Mojeed)

As processors, we must keep stock and tie up capital while waiting to process and sell our products. This puts us at a disadvantage compared to raw bean exporters. We know Nigeria’s cocoa supply may not meet our needs unless there is a focused plan to increase production.

Beyond our sustainability program, which focuses on current cocoa farms, we also aim to replace old cocoa trees, as many are aging.

We developed our own agroforestry model, which we are currently rolling out in Ondo and Cross River states. We appreciate the support from state governments. Ondo State has given us about 1,000 hectares of land, where cocoa farmers can own plots and establish farms based on quality standards. The Cross River State Government has provided around 7,000 hectares. We will continue to seek support from other cocoa-producing states. We have reached out to state governments and are waiting for their replies. We are ready to work with them to make more land available for cocoa production. Nigeria must increase its output to compete with other major cocoa countries. For example, Côte d'Ivoire produces over 1.2 million metric tonnes of cocoa each year, while Ghana produces about 700,000 metric tonnes. Nigeria used to be a top cocoa producer. I believe we can return to that rank by investing in production, improving farm productivity, and expanding cocoa-growing capacity.

PT: With monthly electricity bills reportedly hitting ₦45 million, how close is Johnvents to transitioning into a fully self-sustained renewable energy model, and what timeline should investors expect for this switch?

Mr. Alamu: Energy efficiency and switching to cleaner energy are key goals for strengthening Johnvents Group’s operations, cost efficiency, and environmental performance. Given that our processing facilities consume a lot of energy, we are taking a phased approach to find viable renewable energy solutions.

According to our 2025 Sustainability Report, 39.41% of our energy use came from renewable and low-carbon sources. Based on this, we commit to exploring renewable energy options at our facilities, improving energy efficiency, and evaluating technical and commercial feasibility, including solar power and energy storage.

At the same time, we are enhancing our greenhouse gas accounting by calculating and monitoring our Scope 1 and Scope 2 emissions. This helps us understand our emissions better, find reduction opportunities, and track our progress. These insights will guide our energy transition priorities and assist in developing a practical plan for reducing carbon emissions. Our next steps include assessing energy demand at each site, evaluating investments needed, and prioritizing initiatives to lower grid dependence and costs.

Although we don’t have a set timeline for achieving full renewable energy self-sufficiency, our immediate goal is to create a structured plan with measurable milestones. This will balance emissions reductions and long-term savings while ensuring reliability for our operations. We will share specific targets and timelines as we progress.

PT: Credit assessments have highlighted that a significant amount of working capital is tied up in inventory and advance deposits to aggregators. What steps are you taking to free up cash flow and reduce liquidity pressures during the off-season?

Mr. Alamu: Our working-capital needs reflect the seasonal nature of agricultural procurement. During key crop times, we secure raw materials to support production and meet customer demand. This inventory is then processed, sold, and converted into cash. Effectively managing this cycle is a crucial part of our operating model. We focus on maintaining discipline across the entire cash-conversion cycle, from procurement and inventory management to production and sales. This includes improving demand forecasting, enhancing inventory turnover, aligning purchases with production and sales, and closely monitoring receivables.

Because of the business's seasonality, we also look for financing options that match agricultural procurement cycles and the timing of customer payments. Our cash-conversion cycle can last up to about 150 days during peak seasons, while customer payments usually come in 25 to 40 days. This reflects the timing between procurement, processing, shipping, and collection.

Our focus is to manage this cycle carefully, maintain liquidity, meet obligations on time, and ensure our operations are funded to seize opportunities during crucial procurement times. Any specific financing or capital initiatives will be communicated according to our approved financial disclosures.

Packaged cashew nuts for export at Johnvents Group in Ondo State. (PHOTO CREDIT: Abdulkareem Mojeed)

PT: Insecurity and farmer displacement are major realities in your sourcing regions. How is Johnvents physically protecting its supply chain and ensuring a steady flow of raw materials if critical farming hubs face sudden lockdowns or disruptions?

Mr. Alamu: Building a resilient supply chain starts with knowing where our raw materials come from. We maintain strong ties with suppliers and farmer groups, avoiding reliance on a single source or route. Our cocoa sourcing network covers several Nigerian states. This multi-origin strategy allows us to manage changes in local conditions based on crop availability, quality needs, and business considerations. We also engage with farmer associations, cooperatives, and local buying agents, supported by sourcing and traceability processes. These relationships keep us informed about supply conditions and help us respond when volumes or logistics are affected. At the operational level, we must coordinate security and emergency planning with local authorities and stakeholders based on risks.

We cannot eliminate all security risks in agricultural areas, and we do not claim any sourcing model is free from disruption. Our main goal is to spot emerging risks early, assess other sourcing and logistics options when needed, and protect the safety of farmers, workers, suppliers, and transport partners while ensuring responsible procurement.

PT: While your export-heavy model brings in foreign exchange, it also exposes you to intense global commodity-price shocks. What hedging strategies do you have in place to protect Johnvents if global cocoa or cashew prices fall unexpectedly?

Mr. Alamu: Commodity-price swings are a real risk for any processor or player in international markets. Our strategy includes careful procurement, monitoring the market, managing inventory, and understanding price exposure at each stage of trading and processing.

When export sales and input purchases are in foreign currency, matching these exposures can help manage some risks, but it doesn’t erase the effects of sudden price changes. The right tools depend on the commodity, contract details, market liquidity, and our risk appetite. We evaluate exposures and commitments to hedge risks, protect margins, and ensure we meet customer and supplier obligations. Our main goal is to manage exposure wisely, avoid unsupported risks, and build a strong business across market cycles.

Bar chocolate processing plants at Johnvents Group in Ondo state (PHOTO CREDIT: Abdulkareem Mojeed)

PT: Johnvents has set a target for 100 per cent traceability and certified sustainable sourcing by 2027. Given your reliance on fragmented independent aggregators, what is the biggest bottleneck holding you back from hitting this deadline?

Mr. Alamu: Johnvents has achieved 100 per cent traceability and EUDR compliance across our sourcing scope, marking a big step in enhancing supply chain transparency and responsible sourcing. Our progress shows ongoing investment in farm mapping, supplier data management, farmer engagement, and monitoring systems. We now aim to sustain this achievement as our sourcing network and volumes grow while continuing to strengthen supplier oversight and certified sustainable sourcing.

Working with independent aggregators requires consistent data management, verification, and adherence to responsible sourcing standards across various actors and locations. Our sustainability reports also show progress in this area, including 122,916 hectares of verified deforestation-free and EUDR-ready farmland in 2025.

Our priority is to keep our traceability systems solid, enhance ongoing verification, and advance certified sustainable sourcing to meet our 2027 commitment. This will ensure our sourcing practices are transparent, reliable, and comply with all applicable regulations and sustainability standards.

Livestock feed processing plants at Johnvents group in Ondo State. (PHOTO CREDIT: Abdulkareem Mojeed)

PT: Fuel subsidy removal and food inflation have increased transportation costs for smallholder farmers. How is Johnvents ensuring these farmers don’t abandon your network for local buyers who may pay cash upfront without requiring strict compliance?

Mr. Alamu: We cannot keep farmers loyal by asking them to bear rising costs without support. It depends on whether our relationship offers a reliable market, clear requirements, and long-term value. We aim to support 150,000 farmers by 2030, and our disclosures currently report over 40,000 farmers in our network.

We are building strong relationships with farmers through training, access to seedlings, cooperative structures, traceability support, and market links. Training and clear communication about quality needs can also cut down on avoidable rejections, delays, and costs.

Payment terms and transport arrangements matter to farmers, so they must be feasible and clearly communicated. We should not promise universal farm-gate collection, transport subsidies, or immediate cash payments unless we can deliver. Our aim is to create partnerships where responsible sourcing requirements are met with reliable engagement, transparent processes, and a trustworthy market route.

PT: Large-scale cocoa processing faces growing scrutiny over deforestation and monocrop farming. Beyond providing macro-loans, how are you actively enforcing agroforestry practices among independent smallholders who lack the capital to shift to climate-smart farming?

Women sorting out premium cashew nuts at Johnvents group factory (PHOTO CREDIT: Abdulkareem Mojeed)

Mr. Alamu: Our strategy is to make sustainable farming practical for smallholders. Through our cocoa sustainability program, we partner with farmers on good agricultural practices, climate-smart methods, farm mapping, and traceability. Since 2022, we have distributed over 400,000 cocoa and shade trees to help improve farm resilience and increase tree cover in cocoa areas.

We have trained more than 8,000 farmers in climate-smart agriculture across Ondo State, and 122,916 hectares are verified as deforestation-free and EUDR-ready. We use farm-level data and traceability systems to enhance visibility of sourcing areas and identify deforestation risks. These efforts work alongside our engagement with farmer groups and supply-chain partners on responsible sourcing.

Enforcement must come with practical support. Farmers need guidance on tree management, soil health, productivity, and compliance, plus access to seedlings and cooperative structures for knowledge sharing. We also monitor implementation and deal with non-compliance through our supplier and sustainability processes. We know this transition takes time, especially for farmers with limited capital. Our goal is to combine clear standards with monitoring and farmer support instead of relying solely on financing.