….set to galvanize agric funding

By Gabriel Ewepu

ABUJA – IN a bid to ensure inclusivity for access to funding in the agricultural sector towards massive food production amid the current hunger in the land, the National Agricultural Development Fund, NADF, Thursday, disclosed deliberate moves to ensure women farmers and youths are placed top on the list of its funding policy.

This was made known by the Executive Secretary and Chief Executive Officer, CEO, NADF, Mohammed Ibrahim, at a media interaction held at the agency’s headquarters in Abuja.

Ibrahim explained that the establishment of the NADF by an Act of Parliament mandates them to ensure adequate funding is accessed by farmers and also develop agribusinesses, with special focus on certain demographics.

According to him, the NADF is working in collaboration with critical partners including the Central Bank of Nigeria, National Agricultural Insurance Corporation, NAIC, NIRSAL, Bank of Agriculture, BoA, Federal Ministry of Agriculture, State Governments, GIZ, and other development partners to ensure the funding gap in the sector is bridged.

The National Agricultural Development Fund is established by an act of the National Assembly, known as the National Agricultural Development Fund (Establishment) Act 2022 (Act No 34, 2022).

The Fund was established to address the constraints of agricultural finance and to enhance the potentials of the agriculture and food systems; the overall objective being to promote agricultural development and food security in the country.

Limited access to financing has held back agricultural growth and the full potential of the nation’s food systems. NADF was created to bridge this gap and empower a thriving agricultural sector that nourishes Nigeria’s future.

To catalyze financing and collaboration across the agricultural sector, unlocking its potential to improve productivity, ensure food security, and drive inclusive socio-economic development.

Tailored Financial Products: A key aspect of NADF’s mandate is to design financial products specifically suited to the needs of Nigerian farmers. Traditionally, farmers have faced difficulties accessing loans due to limited collateral and perceived risks. NADF is developing “Farmer Friendly Finance” products (details to be announced) alongside loan guarantee programs to mitigate risks associated with agricultural lending. This can incentivize financial institutions to participate in on-lending to farmers.

On-lending Through Existing Channels: NADF will not provide direct loans to farmers. Instead, the Act states that the Fund will channel its resources through appropriate financial institutions for on-lending to farmers and agribusinesses. This approach leverages the existing banking infrastructure while potentially offering farmers more favorable loan terms.

He said: “In terms of women, as I mentioned earlier, we are currently doing a product 2-day workshop with the German international development partner, GIZ.

“It is strictly tailored towards gender inclusivity and financial inclusion.

“So I think we have done enough for women. Not just for women, but for all underserved demographics. How do we ensure that in bringing out our products? Every demography is covered, especially the underserved. So, as I mentioned earlier, of the three products, one is dedicated to women only.

“This is the funding gap in agriculture, and as I mentioned earlier, the intention is to have a blended financing model. We are bringing in public sector funding, we are bringing in grants from somewhere, we are bringing in private sector funding.”

On reliable and accurate data of genuine farmers the Agency could verify for accessing the funds the Executive Secretary said, “Data identity management is key. If you are not able to have proper identity management, if you don’t know who is the real farmer then the funds cannot be allocated well.

“But the larger foundational data has been built by the NBS, and we are all collaborating with the NBS to see that we utilize this data.”

“The NADF would require this data probably for funding perspective, whereas the National Seed Council may require this data in its own mandate. So we need to have a larger data body, and I think that has been done accurately.”

On insurance of the farmers’ investments, he also acknowledged and explained that, “The insurance is extremely important. We hope to sign by the close of this year that we have a credit risk guarantee and an insurance cover. What type of insurance are we looking out for? We have to also understand that the sector requires different types of insurance.

“We cannot determine or efficiently run agriculture with generic products. We have to ensure that our products are specifically targeted to solve these problems that we have.

“So we are working with NAIC, and the funds that we have deployed are all covered by not just any insurance company, but NAIC thus far.

“Now, we are speaking to NIRSAL to see that we have a credit risk guarantee attached. In terms of women, as I mentioned earlier, we are currently doing a product 2-day workshop with the German international development partner, GIZ.”

On farm inputs, the Executive Secretary pointing at seeds said this cannot be overemphasized as part of their mandate.

“With agricultural imputes, our special priority area in the short-term are seeds and fertilizer. Why seeds? Seeds are one of the bedrocks of progress in agriculture. Yesterday, we were in a forum and I said, even as non-agriculturalists, we know that there is very little as humans we can do towards our soil, and we are yet to be able to impact on our climate.

“So the seed is one revolutionary agent that other countries have utilized in transforming agriculture. I can give examples with the Cerrado miracle of Brazil, what India has done using that seed. The current trends are high-yield seals, climate-resistant seeds, drought-resistant seeds, all forms of seeds.”

On emergency response and preparedness, the NADF can allocate funds for emergency situations to support agricultural recovery efforts in the event of disease outbreaks or other unforeseen crises.