President of the Feed Industry Practitioners Association of Nigeria (FIPAN), Dr. Ayoola Oduntan, has urged the government and private sector to increase financial support for smallholder farmers and agribusinesses to strengthen the country’s food system.
He noted that while efforts to improve infrastructure, mechanisation, and climate resilience are important, adequate and accessible financing remains the key to agricultural growth.
Dr. Oduntan explained that limited access to credit continues to hinder productivity across the agricultural value chain, as most farmers are unable to secure bank loans due to high collateral demands and short repayment periods.
He said that doubling the flow of credit to productive agriculture within five years is possible if both government and private partners commit to blended finance arrangements.
He recommended that the government should expand risk-sharing facilities and partial credit guarantees while directing central bank incentives to viable value chains instead of focusing mainly on subsidised inputs.
He also encouraged private investors and fintech firms to scale up tools such as invoice financing, warehouse receipts, and pay-as-you-harvest loans that are linked to mobile payment platforms.
According to him, expanding index-based crop and weather insurance would make lending to farmers less risky and encourage banks to offer longer-term credit.
He stressed that investments should not stop at inputs alone but also cover logistics, storage, and value chain development to reduce post-harvest losses and improve farmer incomes.
“If we manage our natural resources efficiently, empower smallholders, and sustain reforms, agriculture can once again become a major driver of food security and national prosperity,” he said.
Also speaking, Aolat Idowu-Agbelekale, Chief Executive Officer of Arcom Treasures, stated that innovative financing methods such as contract farming, interest-free loans, and long-term investment in farming could help close the credit gap for small producers.
She added that consistent and well-aligned policies are vital for progress, noting that the government must create a stable environment that attracts private investment into farm settlements, research, and modern farming systems.
She emphasised that continued investment in regional specialisation, value chain development, and export infrastructure would open up new markets for Nigerian produce and make agriculture more appealing to young people and investors.
Sulaiman Taofeek, a stakeholder in the poultry sector, also drew attention to the challenges farmers face in accessing affordable loans.
He called for dedicated financing programmes with flexible repayment terms and lower interest rates to help farmers expand production. He suggested that specialised agricultural microfinance banks and regulated cooperatives could provide the needed financial backing for rural farmers.
According to him, increasing public spending on irrigation, storage, and road infrastructure would not only improve yields but also make the sector more attractive to investors.
He further called for financing systems that support the adoption of drought-tolerant crops, smart irrigation, and digital farming technologies to help farmers adapt to changing weather conditions.
In his remarks, Austine Adeniba, Chief Operating Officer of Eliakim Integrated Services Limited, said that banks and financial institutions should work closely with the government to reduce the risks associated with lending to the agricultural sector.
He advised that using verified data, such as digital farm mapping, as collateral could increase lenders’ confidence and encourage more investment in agriculture.
He added that with the right data systems and insurance mechanisms, farmers and agribusinesses would be able to access loans more easily without depending on traditional land titles or large collateral, while financial institutions would have a clearer picture of potential risks and returns.
