The National Agricultural Development Fund (NADF) has partnered with the Jigawa State Government to develop Nigeria’s first sub-national agricultural lending de-risking framework.

The initiative, supported by PropcomPlus, is designed to tackle long-standing barriers that prevent farmers and agribusinesses from securing affordable credit while creating a sustainable model that other states could adopt.

The Executive Secretary of NADF, Mohammed Ibrahim,  said the framework reflects a strategic effort to bridge the agricultural finance ecosystem and strengthen collaboration between public and private actors.

“Persistent barriers to access to finance for smallholder farmers and agribusinesses cannot be overemphasised,” Ibrahim stated. 

“If state-led mechanisms like this are put in place, those barriers can be easily surmounted. 

“Our role is to bridge finance ecosystems and facilitate engagements across the agriculture sector.”

He added that the Fund, with support from PropcomPlus, remains fully committed to ensuring the initiative’s success.

Representing the Jigawa State Government, Dr Saifullahi Umar noted that the state had invested nearly $30 million in agriculture and continues to prioritise private sector participation to meet the sector’s expanding financing needs.

He commended NADF’s leadership in bridging national and state-level agricultural finance efforts, aligning with its mandate to promote inclusive and sustainable agricultural development.

The framework is designed to strengthen lending confidence, attract private investment, and establish a resilient financing structure that protects farmers and lenders from risk. 

Experts believe it could serve as a template for other states seeking to improve agricultural finance through innovative de-risking mechanisms.

Source: NADF