The Federal Government is developing alternative financing mechanisms to address Nigeria’s agricultural funding gap and attract more private-sector investment into food production.
The Managing Director of the Nigerian Agricultural Development Fund (NADF), Mohamed Ibrahim, disclosed this at an agricultural roundtable organised by the APC Progressive Strategy Roundtable in Abuja. He said the measures would include credit guarantees, concessional loans, blended financing and non-interest financial instruments.
Ibrahim identified inadequate funding as a major obstacle to agricultural productivity, mechanisation and the transition from subsistence farming to commercial agriculture. He explained that the Fund was adopting a wholesale lending approach to encourage financial institutions and private investors to provide more capital to the sector.
He also highlighted existing government interventions, including the Farm Input Support Programme, fertiliser assistance covering farmers in 25 states, ginger production recovery initiatives, agricultural research, digital extension services and mechanisation training.
