Nigerian banks have increased agricultural financing from about 15% to 3%, making it one of the highest agrarian allocations by any financial institution on the continent.
Abubakar Suleiman, the Chief Executive Officer of Sterling Bank, provided this insight as the opening statement at the Agric Summit Africa 2024, which Sterling Bank hosted.
In his speech, he addressed Nigeria’s critical need for agricultural reform and, as well as the bank’s longstanding commitment to the industry.
According to him, when the bank first began financing agriculture, barely 3% of its loan book was dedicated to the sector. However, through purposeful policy and dedication, this has increased to about 15%, making it one of the greatest agricultural allocations by any financial institution on the continent.
“The questions I get asked whenever people find out how we have supported this Summit, and as mentioned, this is the seventh year. Why agriculture? Why is a bank so laser-focused on Agriculture?” Suleiman asked
One of the summit’s most significant outcomes was Sterling Bank’s increase in agricultural loans. The bank’s strategy is clear: it supports its commitments with real financial backing for farmers and agribusinesses. This investment fosters sector development, increasing production and economic empowerment.
Suleiman stressed the importance of rural farmers having access to information in addition to money. Many farmers lack access to digital platforms, limiting their ability to obtain critical market intelligence and agronomic insights. Sterling Bank launched Nigeria Farmers Radio, a platform that broadcasts agricultural insights and financial literacy seminars in different states to address this. The bank uses traditional radio broadcasts to ensure that even farmers in the most remote places are updated on best practices, new technologies, and financial prospects. This effort has been underway for nearly five years and remains critical in increasing agricultural output.
Suleiman also addressed gender and youth inclusion in agriculture financing. Recognising that women play an important role in food production but have limited access to financial resources, Sterling Bank collaborated with the MasterCard Foundation to establish Sway AgFin, a financing initiative designed specifically for women in agriculture. This initiative has provided over $33 million in funding at single-digit interest rates, benefiting over 20,000 female farmers.
In addition to women’s inclusion, Sterling Bank is actively seeking to recruit young people to agriculture. Agricultural Summit Africa Young Club (ASAYC) is a bank initiative promoting young agriculture involvement. A key component of this initiative is the adoption of smart farms, which incorporate modern agricultural technologies to increase productivity and demonstrate the viability of agriculture as a career path for young Nigerians.
Addressing how smallholder farmers cannot achieve food self-sufficiency independently, Suleiman highlighted the demand for large-scale investments and industry participation. Sterling Bank has launched AgriHub, a digital platform that allows agricultural stakeholders to connect, share resources, and access new market opportunities.
Financial institutions play a crucial role in fostering agricultural development, bridging the knowledge gap, and supporting inclusive growth. Their practices and strategies can serve as a benchmark for other institutions, providing valuable insights for effective implementation and positive impact in these areas.
