Nigeria’s Minister of Agriculture and Food Security, Mohammed Kyari, has urged a shift from traditional credit systems to innovative financing models to strengthen the country’s agricultural sector and achieve food sovereignty.

Kyari made the call on Tuesday during the 2025 FirstBank Agric and Export Conference in Lagos, themed “The Fundamentals of Building a Non-Oil Export-Driven Economy.”

Represented by his Special Adviser (Technical), Ibrahim Alkali, the Minister noted that outdated credit schemes and weak risk-sharing structures have slowed growth in agribusiness.

“We need to completely rethink how we finance agriculture. Traditional loans don’t reflect the realities of today’s farming and export markets”.

“What Nigeria needs are performance-based mechanisms, risk-adjusted instruments, and stronger links between producers and investors,” Kyari said.

He highlighted global financing practices such as revenue-sharing models, pay-as-you-harvest mechanisms, and equity financing as practical examples Nigeria could adopt to transform agriculture from subsistence to surplus.

Kyari also emphasised the importance of value addition and stronger logistics. According to him, Nigeria earns about $700 million annually from raw cocoa beans, but this figure could multiply fivefold if the commodity is processed into finished goods.

He further stressed the need to improve transportation, cold-chain systems, and certification to ensure Nigerian exports meet international standards, stating: “It often costs more to transport goods from Kano to Lagos than from Lagos to Europe.”

On policy collaboration, the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, represented by Mrs Nonye Ayeni, reinforced the government’s commitment to accelerating non-oil exports. 

She highlighted the National Single Window initiative as a major step towards streamlining processes and enhancing transparency.

FirstBank’s Chief Executive Officer, Segun Alebiosu, positioned the conference as a platform for economic diversification.

 At the same time, Lagos State Governor, Babajide Sanwo-Olu, and Niger State Governor, Mohammed Bago, pledged infrastructure investment and land support for agricultural expansion.

Governor Bago, popularly known as the “Farmer Governor,” announced the allocation of 100,000 hectares in Niger State to Lagos, aimed at creating structured large-scale farms for rice, cassava, and other commodities to strengthen food supply chains.

The conference brought together stakeholders across agriculture, finance, and governance, underscoring the urgent need to diversify Nigeria’s economy, reduce oil dependency, and boost non-oil exports through innovative financing and value-added agribusiness.

Source: Punch