The Federal Government of Nigeria and the International Fund for Agricultural Development–Value Chain Development Programme (FGN/IFAD-VCDP) have renewed efforts to strengthen farmers’ access to finance, signing a new agreement with the Development Exchange Centre (DEC) to expand financial inclusion for smallholder farmers.

The two-year Memorandum of Understanding (MoU), covering 2025 to 2026, was signed in Bauchi at DEC’s headquarters. 

The agreement builds on an earlier partnership launched in 2021 and expands coverage to Anambra, Ebonyi and Enugu states, in addition to existing participating locations.

Speaking at the signing, Dr Fatima Aliyu, National Programme Coordinator of VCDP, said the initiative was designed to increase incomes, enhance food security, and reduce vulnerability among smallholder farmers, particularly women and young people. 

The programme currently operates across nine states and directly supports more than 135,000 farmers, with over one million additional beneficiaries reached indirectly. 

The project is expected to run until 2027.

Represented by the VCDP National Rural Finance Officer, Mr Musa Seriki, Aliyu noted that the partnership with DEC had already delivered tangible results, with more than 2,000 farmers accessing loans, savings products and financial literacy training.

She added that beneficiaries had demonstrated strong repayment records, reinforcing the sustainability of the model.

The expanded agreement follows the Federal Government and IFAD’s decision to extend the VCDP by an additional two years, allowing for deeper engagement with rural communities and greater financial access for farmers previously excluded from formal banking systems.

DEC’s Executive Director, Mrs Helen Abah, described IFAD as a long-standing and trusted partner, citing previous collaborations under programmes such as RUFIN and CASP. 

She stated that the partnership had enabled DEC to develop tailored financial products along rice and cassava value chains, with over ₦400 million disbursed to farmers.

According to Abah, the renewed MoU will allow DEC to reach more vulnerable farming households, particularly in areas beyond its traditional coverage. 

She also confirmed that systems were being put in place to ensure farmers continue to access financial services even after the VCDP exits.

Source: VCDP