NADF’s Commendable Drive in Enhancing Farmers Access to Finance in Nigeria.
By Abdullahi Abdul
Since assuming office nearly two years ago, the Executive Secretary of the National Agricultural Development Fund (NADF), Muhammed Abu Ibrahim, has spearheaded transformative initiatives that have significantly impacted Nigeria’s agricultural sector. Under his leadership, the NADF has taken visible steps to tackle the major challenge of financing that has weighed down farmers especially in rural communities. The NADF has therefore prioritized partnerships that will facilitate farmers’ access to finance which will in turn contribute significantly to achieving food security and economic growth in Nigeria.
One of the major challenges facing Nigerian farmers has been limited access to credit facilities. Recognizing this, the Executive Secretary introduced innovative collaborative financing models to support smallholder and commercial farmers. Through strategic partnerships with financial institutions and development agencies, the NADF hopes to facilitate low-interest loans and grants to thousands of farmers. A testament to this – as chronicled in the Fund’s X handle – was the finalising of a financing framework with German Development Corporation (GIZ) recently where the ES stressed NADF’s commitment “to unlock and deploy financing that works for every Nigerian farmer, no matter where they are or what barriers they face” and described the framework as “co-creation of a financing model that meets farmers where they are and takes them to where they deserve to be.”
This partnership was a fall out of the NADF’s participation earlier in the year in the Scaling Access to Finance for Agripreneurs in Africa conference held in Berlin, Germany. That conference marked a significant milestone in transforming Africa’s Agri-Food Systems. The event, supported by the German Federal Ministry for Economic Cooperation and Development, brought together over 100 delegates and experts from 14 countries, primarily across Africa. At the conference, delegates shared experiences and lessons learned from implementing the Promotion of Agricultural Finance for Agri-based Enterprises in Rural Areas programme in nine African countries. Participants included representatives from governments, financial institutions, the private sector, non-state organizations, international organizations, and development cooperation agencies. A “declaration” was issued, providing tangible recommendations to further implement the Kampala Declaration of the African Union’s Comprehensive Africa Agriculture Development Programme. The declaration emphasized “Boosting Investment and Financing for Accelerated Agrifood Systems Transformation” and reaffirmed the importance of scaling access to finance for agripreneurs.
NADF also took the access to finance for farmers campaign to financial institutions at a capacity building training organized in partnership with NIRSAL where the ES also pointed out that “By working together with financial institutions, development partners, and private sector, we can build a future where finance is no longer a barrier but a catalyst for agricultural transformation.
Under the dynamic leadership of the ES, the Fund also agreed to a Memorandum of Understanding with IDH Transforming Markets to fast track agricultural transformation in the country. Through this collaborative effort, the two bodies aspire to develop sustainable and inclusive financing solutions, equipping agribusinesses and SMEs to become investment-ready. A key focus of the collaboration is to support the operationalisation of the Nigerian Food Systems Transformation Alliance, a platform dedicated to implementing strategic interventions for a more resilient and efficient food system. The MOU also establishes a technical assistance facility, leveraging the resources and expertise of both organisations to accelerate progress in the sector.”
Similarly, the ES led his management team to welcome Mr. Paul Abiagam, Acting Managing Director of Coronation Merchant Bank to a meeting to explore innovative financing solutions, public-private partnerships, and customized financial products designed to address the unique needs of farmers, agribusinesses, and other stakeholders in the agricultural value chain. It is expected that these interventions would improve agricultural productivity while reducing reliance on informal lenders with exorbitant interest rates.
In just two years, the Executive Secretary of the NADF has made remarkable strides in transforming Nigeria’s agricultural landscape. By going into these strategic alliances that will facilitate farmers’ access to finance, the NADF has laid a strong foundation for sustainable agricultural growth. Moving forward, continued investment in these areas will further strengthen food security, reduce poverty, and drive economic diversification in line with the federal government’s agenda. With such achievements, the NADF is poised to play a pivotal role in positioning Nigeria as a leading agricultural powerhouse in Africa.
Abdul sent this piece from Kaduna.
