By Muhammad Jalal
Nigeria’s agricultural sector has been said to facing funding gap, with estimates placing it at $180 million.
The Executive Secretary of the National Agricultural Development Fund (NADF), Mohammed Ibrahim disclosed this alarming figure during a media chat in Abuja .
He said that NADF was focused on addressing the shortfall through a blend of public sector funding, private sector investments and grants.
Ibrahim emphasized that while the NADF receives funding from various sources, including a small percentage of the Natural Resource Development Fund (NRDF), which is derived from the Federation Accounts Allocation Committee (FAAC), the primary challenge lies in bridging the vast financial gap hindering agricultural growth.
He noted that funding gap in agriculture was estimated to be about $180 million, stressing that there was urgent need for innovative financial models to tackle the sector’s funding challenges.
Ibrahim mentioned that NADF was established to finance agricultural development and to operate differently from traditional banks, adding that it was designed as a wholesale fund that partners with banks for direct disbursements, providing capital for agricultural projects.
The NADF Executive Secretary explained that the fund aims to create a sustainable financing environment by attracting both domestic and international investors, emphasizing that they were allowed by their act to raise capital, co-fund, and seek investors.
He stated that central to NADF’s mission was the need for accurate and comprehensive data on farmers and described as integral to effective funding allocation.
He further said that NADF collaborated with the National Bureau of Statistics (NBS) and other relevant bodies to build a robust farmer database, ensuring that funds were channeled to the right recipients.
In addition to funding, Ibrahim highlighted the critical role of insurance and risk management in supporting agricultural investments.
“The NADF is working with the Nigerian Agricultural Insurance Corporation (NAIC) to develop tailored insurance products, especially for high-risk sectors like livestock and fisheries” , he noted .
Ibrahim also reiterated NADF’s commitment to gender inclusivity, particularly for women ,Youth and underserved groups, through dedicated products and workshops.
He said that key focus for the NADF was the provision of agricultural inputs, including high-yield seeds and fertilizers, which are seen as essential for increasing productivity and tackling food security challenges in Nigeria.
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