Why Cardinal Torch Is Betting on Nigeria's Agricultural Exports—and How You Can Invest

Every year, billions of naira worth of Nigerian agricultural commodities leave the country's ports for buyers across Europe, Asia and the Middle East.

Behind many of those shipments are companies that buy produce directly from farmers, process it, move it through warehouses, and deliver it to international buyers. They are a critical link between Nigerian agriculture and global markets.

One of those companies is Cardinal Torch Company Limited.

Today, investors on AssetBase have an opportunity to invest in the company's latest Commercial Paper issuance, offering a 24.50% gross implied yield over a 364-day tenor.

About Cardinal Torch

Founded in 2020, Cardinal Torch is a Nigerian agricultural commodity trading and agro-processing company focused on sourcing, processing and exporting agricultural products.

Its primary business is cocoa exports, where it supplies cleaned and dried cocoa beans to international buyers across markets including Belgium, the Netherlands, Indonesia, Malaysia and the UAE.

Beyond cocoa, the company also trades sesame, soybean and cashew, while expanding into value-added processing through investments in ready-to-eat cashew production.

Its operations are supported by warehouse facilities across Lagos, Ogun, Cross River and Taraba, alongside a dedicated logistics fleet that enables the movement of thousands of metric tonnes of agricultural commodities annually.

Building an Export Business

Agricultural exports require more than simply buying crops.

Exporters must source commodities from multiple producing states, maintain quality standards, manage storage, arrange logistics, secure international buyers and finance purchases months before payment is received.

Cardinal Torch has built relationships across each stage of that value chain.

The company supplies established international commodity buyers including ETG, Olam Agri, Sucden, Valency, SIFCA and COAF Agri, while using futures contracts to hedge cocoa price movements.

Since export sales are denominated in US dollars, the business also benefits from a natural hedge against Naira depreciation.

A Business That Has Been Growing

According to its audited financial statements, Cardinal Torch recorded significant growth in 2025.

Revenue increased by 163% year-on-year, reaching ₦13.9 billion, driven by higher export volumes and stronger cocoa prices.

Operating profit also grew to ₦1.34 billion, while profit before tax reached ₦1.08 billion.

Although rising cocoa procurement costs reduced profit margins, the company continued expanding its operations and strengthening its export franchise.

As part of its long-term strategy, Cardinal Torch is investing in local agro-processing, including a new cashew processing facility expected to commence operations after completion.

About This Commercial Paper

Commercial Papers are short-term debt instruments issued by companies to raise working capital.

Rather than borrowing exclusively from banks, companies can raise capital directly from investors for specific operational needs while offering a fixed return over an agreed investment period.

In Cardinal Torch's case, proceeds from this issuance will support the company's short-term working capital requirements, helping finance its commodity trading activities as it continues expanding operations.

Why Investors May Consider This Opportunity

Competitive Fixed Return

The Commercial Paper offers a 24.50% gross implied yield over a 364-day investment period.

Exposure to Nigeria's Export Economy

The investment provides indirect exposure to one of Nigeria's largest export industries through an established commodity trader.

USD Revenue Business

Because Cardinal Torch earns much of its revenue in US dollars, the business benefits from a natural hedge against currency depreciation.

Established Market Relationships

The company has built relationships with globally recognised commodity buyers while maintaining warehousing and logistics infrastructure across multiple Nigerian states.

Investment Grade Credit Ratings

Cardinal Torch is rated BBB+ / A2 by DataPro and Bbb- / A3 by Agusto & Co., reflecting its operating history, export business and financial profile.

Key Investment Details

Final Thoughts

Nigeria's agricultural exports continue to play an increasingly important role in the country's economy, creating opportunities for businesses that can efficiently source, process and deliver commodities to global markets.

Through this Commercial Paper issuance, investors have the opportunity to participate in the growth of one such business while earning a fixed return over a one-year investment horizon.

As with any investment, prospective investors should carefully review the offer documents, understand the risks involved and ensure the opportunity aligns with their financial objectives.