The agricultural sector of Nigeria is moving to a new era of growth led by investments such as Federal Ministry of Food Safety, in association with the National Agricultural Development Fund (NADF), presented bold initiatives to attract private capital to the sector, with an approach in curbing subsequent losses after harvest.
Speaking with journalists after the Food Systems Forum in Africa, NADF Executive Secretary Mohammed Ibrahim said the recently launched Legacy project of the Ministry is designed to unlock the financing for the ecosystem after the harvest. In this area, losses reach up to 60 percent in some value chains.
“The question we have before us is how to continue promoting agriculture. Governments have done a lot, but what investors want is risk mitigation, enabling policies and financing opportunities. That is what we are creating,” Ibrahim explained.
To reduce loan risks and attract investors, NADF introduces combined finance tools, including dealership loans, guarantees and first loss capital.
Loan schemes are already spreading to large -scale companies with farmers’ networks, while special programs are aimed at agroprocessors in high demand value chains such as rice, corn, soybeans and cassava.
The information project, one of the flagship schemes, will subsidize inputs for agroprocessors with proven versed integration models. The initiative aims to strengthen the supply chain between the farm and the factory, reduce waste and stabilize food prices.
The Legacy project also includes a national impulse for rural storage facilities at the community level, designed to preserve quality, extend useful life and reduce food losses in the “first mile.”
Parallel efforts are being made to strengthen the Nigeria seed system, with combined financing introduced to reduce indebtedness costs for seed companies.
Mechanization is another priority, with NADF support equipment through crop chains, cattle, aquaculture and forest value, while financing irrigation infrastructure to move from rain agriculture to agriculture throughout the year.
In the Food Systems Forum in Africa, the presentation of Nigeria attracted a great interest of international investors and development partners. Ibrahim stressed that one of the results was the formation of a platform for the continuous participation of investors and collaboration through the country.
He also pointed out the “Project X”, an association with the private capital firm based in the United States Atlas, which seeks to develop agricultural investment corridors in all countries that face similar challenges, thus creating larger and eliminated opportunities for financiers.
Ibrahim emphasized that the goal is to reposition agriculture as a modern business sector instead of a subsistence activity.
“Agriculture is no longer our grandfather’s business. It is a prosperous promoter of national growth. When farmers and processors thrive, investors also thrive. Our mandate is to guarantee the flow of funds, improve profitability and reduce risks in the value chain,” he said.
The initiatives, the authorities say, will not only reduce the losses of food from Nigeria, but will also deepen the confidence of investors in agribusiness, paving the way for a stronger participation in the private sector in the coming years.
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