The National Agricultural Development Fund (NADF) has introduced a blended financing model to address the $180 million agricultural funding gap in Nigeria. Mohammed Ibrahim, the Executive Secretary/CEO of NADF, made this announcement during an interactive session with the Agricultural Correspondents of Nigeria (ACAN) in Abuja on Thursday. He noted that the suspension of import duties on key agricultural products like rice and sugar by the Central Bank of Nigeria (CBN) had reduced the Fund’s revenue, necessitating alternative financing strategies.
Established by an Act of Parliament, the NADF aims to provide sustainable funding for Nigeria’s agricultural sector, which has long suffered from inadequate budgetary allocations. Ibrahim recalled Nigeria’s commitment to the Maputo Declaration on Agriculture and Food Security, which advocates allocating 10% of national budgets to agriculture— a target Nigeria has yet to meet. “The Fund was created because budgetary allocations alone cannot sustain agriculture,” he said.
To achieve its mandate, the Fund has developed a five-year strategic plan focusing on key agricultural priorities, including seeds and fertilizers, mechanization, infrastructure, increased storage, and emergency response. Ibrahim highlighted the importance of supporting smallholder farmers, particularly women and youth, while prioritizing key crops such as cassava, rice, maize, and cowpea, which represent the largest segment of Nigeria’s farming population.
On funding mechanisms, Ibrahim explained that NADF previously relied on import duty levies on agricultural products and allocations from the Federation Account. However, with the suspension of these charges, the Fund is leveraging its legal authority to raise capital through external investors. “A fund is not a bank; it is designed to raise capital and channel it towards priority areas,” he stated.
The deployment of the Fund’s finances will focus on three models: debt, equity, and grants. Ibrahim emphasized the importance of strong financial frameworks to ensure effective use of resources and tackle the persistent challenges of agricultural financing. “The financing gap in agriculture is estimated at $180 million, and we must adopt innovative approaches to bridge this gap,” he added.
Ibrahim reiterated NADF’s commitment to creating sustainable solutions for Nigeria’s agricultural sector through targeted investments, strategic planning, and inclusive support for farmers. He expressed optimism that the blended financing model would position the sector for long-term growth and food security.
