Commercial Banks Loan N4.68 Trillion to Nigeria’s Agricultural Sector from 2018 to 2022 – Report
In a recent report, Nigeria’s commercial banks reportedly provided N4.68 trillion in loans to the agricultural industry between 2018 and 2022.
This finding comes at a critical time as the Federal Government of Nigeria, along with state governments, seeks solutions to the ongoing national food crises. The report, titled “Commercial Bank Lending to the Nigerian Agricultural Industry 2018-2022,” was published by Alford Conferences Limited, an Abuja-based organization, as part of the lead-up to the Nigerian Food Surplus Summit.
Frederick Apeji, CEO of Alford Conferences, presented the findings at a press conference in Abuja. He emphasized the need for commercial banks to reinforce their support for the agricultural sector, stating that only 5.03% of their total loan portfolios were allocated to agriculture during the report’s timeframe. He urged state governments to collaborate more closely with banks to facilitate funding for agricultural projects.
The total lending of N4.68 trillion over five years stands in notable contrast to the N8.18 trillion in internally generated revenue raised by the FCT and the 36 states during the same period. Additionally, it is significant when compared to the N1.12 trillion allocated to the Anchor Borrowers Fund by the Central Bank of Nigeria (CBN), aimed at supporting smallholder farmers since its establishment in late 2015.
The report analyzed 22 licensed banks in Nigeria, identifying those with loans exceeding N1 trillion. Of these, 12 banks were highlighted for their contributions to the agricultural sector. Access Holdings Plc emerged as the largest lender, offering N928.55 billion to agriculture within its total loans of N17.386 trillion. Other top lenders included Zenith Bank and FBN Holdings, which provided N873.36 billion and N285.18 billion to agriculture, respectively.
Ecobank Nigeria topped the list for the highest percentage of agricultural lending, dedicating 12.28% of its total loans—amounting to N574.69 billion—to the sector. Following closely were Sterling Bank and FCMB Group, which committed 8.19% and 7.58%, respectively. Meanwhile, Zenith Bank, Access Holdings, and Stanbic IBTC Holdings also surpassed the industry average of 5.03% in agricultural lending during the 2018-2022 period.
Alford Conferences Limited, which organizes the annual Nigeria Food Surplus Summit, aims to address the challenges of food production in a country of over 220 million people. The upcoming summit aspires to transform the agricultural landscape by promoting commercial farming and processing, thereby reducing reliance on smallholder farmers and fostering greater self-sufficiency and export capacity.
The discussions from the summit will seek to strengthen commercial agriculture across Nigeria’s states, aiming for a strategic partnership with local agricultural ministries to enhance productivity and output.
