Structural challenges including poor funding for agricultural research, inadequate infrastructure, fragmented landholdings, limited technology and storage facilities, and climate risks are restricting Nigerian farmers’ access to finance, a Central Bank of Nigeria official, Dr Michael Ononugbo, has said.
Speaking at the GP AgFin Nigeria close-out conference in Abuja, Ononugbo said Nigeria’s agricultural finance gap was not simply a shortage of capital but also a problem of inappropriate and poorly structured financing. He called for greater investment in agricultural research and innovation to improve productivity.
The eight-year German-funded GP AgFin Nigeria project reached more than 101,000 farmers and agribusinesses across 10 states. According to GIZ, loan disbursements under the project increased from €776,000 in 2021 to €53.9 million, while 19 of 22 agricultural finance products developed through the project have been permanently integrated into partner financial institutions.
This story originally apeared on the Punch Newspaper