Cardinal Torch Company, a Nigerian agro-commodity trader, has launched a N10 billion commercial paper offer, part of a N30 billion programme arranged by FSDH Capital, as it seeks to fuel rapid growth in the country’s evolving agricultural export sector.
The company, founded in March 2020, moves cocoa, sesame, cashew, and soybean from Nigerian farms to buyers in Dubai, Jakarta, Kuala Lumpur, Antwerp, and Rotterdam. Its integrated business model, with warehousing, logistics, and processing, has driven revenue growth of 110 percent annually since 2022.
Its financials show revenue of N13.93 billion in 2025, with profit after tax crossing N1 billion. The commercial paper offer, open until July 16, reflects a broader shift among Nigerian agro-industrial firms towards capital markets to fund growth.
By voluntarily submitting to credit ratings, audits, and investor scrutiny, Cardinal Torch aims to build a lasting institution, tapping into Nigeria’s growing capital markets to support its expansion.
Growth engine in high gear
Its financial results are exceptional. Revenue grew from N1.50 billion in 2022 to N13.93 billion in 2025, a three-year compound annual growth rate of 110 percent, driven by cocoa export volumes and higher prices.
Profit after tax crossed N1 billion in 2025, with shareholders’ funds reaching N2.75 billion. The company has been profitable every year since inception.
The balance sheet entered 2026 with current assets of N5.0 billion covering current liabilities 1.7 times. Despite global cocoa price spikes, Cardinal Torch expanded gross profit to N1.63 billion and lifted operating efficiency, with administrative costs falling to 2.4 percent of revenue.
Agusto & Co. credited the company’s “disciplined pricing framework, well-established supplier and buyer networks, and prudent use of structured trade finance.”
Value-added ambitions
Cardinal Torch is migrating up the value chain, investing in cashew processing and branded consumer goods. Its cashew facility in Ogun State is expected to produce 600 tonnes of semi-processed kernels annually, with net profit projected at N869 million in the first year, rising to N6.8 billion by year five.
The company projects returns on fixed assets of 62-70 percent and break-even in year three.
The company’s soya processing facility aims to generate over $58 million in annual revenue, with break-even in 24 months. Cardinal Treats, a premium cashew brand, is rolling out across Nigeria, the UK, and Dubai, marking a decisive shift from bulk trading to branded, higher-margin consumer goods.
Governance and institutionalisation
Cardinal Torch’s governance structure is robust, with a seven-member board and experienced management. The company has audited financial statements, dual credit ratings (BBB+ long-term and A2 short-term from DataPro, and Bbb- long-term and A3 short-term with a stable outlook from Agusto & Co.), and a legal opinion, demonstrating its commitment to transparency and institutionalisation.
The commercial paper programme is a testament to Cardinal Torch’s credibility, with investors buying into the company’s name, ratings, and disclosure.
The N10 billion offer is part of a larger trend, as Nigerian companies tap capital markets to fund growth and build lasting institutions.
Market context
Nigeria’s capital markets are evolving, with companies increasingly using commercial paper to fund growth. Cardinal Torch’s debut offer follows this trend, with the company leveraging its integrated business model and strong governance to attract investors.
The distribution syndicate includes FSDH Capital, Comercio Partners, Lead Capital, and United Capital, among others. The offer closes on July 16, 2026. Looking Ahead
Cardinal Torch’s commercial paper debut marks a significant milestone in Nigeria’s agro-industrial sector.
The company’s focus on value-added products, robust governance, and access to capital markets positions it for continued growth and success. As Nigerian companies increasingly tap capital markets, Cardinal Torch is poised to become a leading player in the country’s agricultural export sector.