Korede Abdullah 
LAGOS, Nigeria – The National Agricultural Development Fund (NADF) has begun validating a proposed Non-Interest Finance Framework aimed at widening access to agricultural financing for Nigerian farmers and agribusinesses.
The framework is expected to provide additional financing options for farmers, businesses and other operators across the agricultural value chain as the country seeks to address funding constraints and strengthen food security.
NADF Executive Secretary, Mohammed Ibrahim, disclosed this on Tuesday at a strategic roundtable and validation session on the proposed framework and guidelines.
Ibrahim said the initiative was not intended simply to create another financing mechanism but to broaden the range of funding options available to agriculture. “The objective is not simply to introduce another financing framework but to broaden the financing ecosystem for agriculture by ensuring that every credible financing option is available to Nigerian farmers, agribusinesses, and other value chain actors.”
He said the documents presented at the session were still drafts, allowing stakeholders to scrutinise the proposals and contribute technical expertise before their finalisation.
Non-interest finance can provide financing models based on asset backing, risk sharing and other structures that differ from conventional interest-based lending. NADF has identified expansion of agricultural finance as part of its broader mandate to support growth in Nigeria’s agriculture sector.
Also speaking at the validation session, the Director of the Development Finance Advisory Department of the Central Bank of Nigeria, Dr Paul Oluikpe, said Nigeria’s agricultural financing needs remained substantial. He linked the scale of the financing requirement to the country’s population, the importance of agriculture to the economy and the challenges confronting farmers and other value-chain operators.
The validation process is expected to allow financial-sector experts, farmers and other stakeholders to examine the proposed guidelines and identify areas requiring improvement before NADF adopts the framework.
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Oluwatobi Adu 