A non-governmental company called HortiNigeria has reported that since its founding in 2021, it has taught more than 70,000 farmers and raised £4 million to support the horticulture industry in Nigeria and spur economic expansion.

This was announced by the Program Director of HortiNigeria, Mr. Mohammed Idris, at the ongoing workshop for financial institutions in Abuja, which is being held in partnership with the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).

“Unlocking Sustainable Finance for the Horticulture Sector” is the workshop’s theme.

According to Idris, the HortiNigeria program is run by a consortium headed by the International Fertiliser Development Centre (IFDC), which the Embassy of the Kingdom of the Netherlands financially supports.

It has also supported Micro, Small, and Medium Enterprises (MSMEs) with tools to aid their growth.

He emphasised that despite agriculture’s contribution to Nigeria’s economic growth and job creation, the sector receives less than six percent of total commercial bank lending.

“The horticulture sub-sector, in particular, continues to suffer from neglect due to perceived risks associated with perishability, market volatility, and seasonality,” he said.

He said the four-day workshop aims to equip financial institutions to understand better and invest in horticultural value chains.

“The training is designed to equip financial institutions with practical knowledge on structuring inclusive horticulture financing products, mitigating risk, and unlocking investments for smallholder farmers and agribusinesses.

“It is expected to lead to the development of tailored financial products for horticultural enterprises, increased lending and investment in the sector, and stronger partnerships between banks and agricultural actors, all within a de-risked ecosystem supported by NIRSAL’s tools, frameworks, and guarantees,” Idris stated.

Speaking on “De-risking and Funding Mechanisms for a Rewarding and Sustainable Horticulture Sector”, Mr Sa’ad Hamidu, Managing Director of NIRSAL Plc, noted that agriculture remains the cornerstone of Nigeria’s economy.

According to him, it employs millions across rural and peri-urban communities.

Hamidu, however, acknowledged that the horticulture subsector and the broader agricultural sector continue to face limited access to finance despite its potential for high-value addition and job creation.

“Agriculture contributes an estimated 24 per cent to GDP, according to the National Bureau of Statistics’ 2024 report, yet only receives about four per cent of total lending from deposit money banks, as indicated in the Central Bank of Nigeria’s Q3 2024 report,” he said.

He added that NIRSAL believes improving financial institutions’ understanding of the horticulture value chain and equipping them with the tools to assess, manage, and mitigate risks is crucial to unlocking capital and fostering growth.

“Our mission is to fix broken agricultural value chains, reduce risks across the agricultural financing spectrum, and stimulate increased bank lending to the sector.

Mr Yusuf Dtamani, Country Director of IFDC, said the capacity-building programme aims to address a gap in Nigeria’s agricultural financing landscape.

He noted that access to formal finance remains a significant barrier, particularly in the horticulture sub-sector, despite agriculture’s role in the national economy and employment.

“We believe these challenges can be transformed into opportunities if financial institutions are empowered with the proper knowledge, tools, and risk mitigation strategies.

“This training will enable participating institutions to better understand the business operations, dynamics, and opportunities along the horticulture value chain, from production and marketing to aggregation, processing, and logistics.

“Our collaboration with NIRSAL reflects our commitment to facilitating a sustainable flow of finance and investment into agribusiness, particularly in traditionally underserved areas,” Dtamani added.

According to Ms. Foluso Adejoro, policy advisor at the Netherlands Embassy, the Kingdom views horticulture as a major contributor to jobs, economic growth, and improved nutrition.

However, Adejoro emphasised that the sub-sector’s potentials can only be realised through financial access.

Source: NAN

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