The national administration has requested financial organizations to create a funding approach that would allow small-scale vegetable growers to participate in environmentally friendly farming practices.
At a workshop aimed at accessing sustainable financing for Nigeria’s horticultural industry, Minister of Agriculture and Food Security Senator Abubakar Kyari presented his case on Tuesday in Abuja. The event was jointly organized by HortiNigeria and NIRSAL.
‘The minister stated that we require funding enabling farmers to undertake organized investments spanning an extended duration.’
Sen Kyari emphasized that horticulture, which encompasses the growing of fruits, vegetables, herbs, spices, flowers, and ornamental plants, goes beyond being just a sub-sector within agriculture.
It serves as an active catalyst for transforming rural areas, generating employment opportunities, enhancing nutritional standards, and fostering trade diversity. As urbanization accelerates and awareness about nutritious eating grows, consumers increasingly seek fresh and varied food products. This presents a significant opportunity for horticulture to address these evolving needs.
It is crucial to comprehend how the pricing of horticultural products contributes directly to food inflation in Nigeria. Tomatoes and peppers, which are mendasar components in almost every Nigerian household’s cuisine, act as foundational items for everyday cooking.
“When the costs of these essential items rise sharply, they trigger a ripple effect that impacts meal expenses in homes, eateries, and food stalls alike. Data from the National Bureau of Statistics in 2024 reveals that tomatoes topped the list of rising food prices with an astounding 320% annual increase, closely trailed by peppers and various other crops. Such fluctuations disproportionately burden lower-income families, highlighting the critical necessity for enhanced stability in production, improved storage solutions, and easier access to financial resources within the horticultural sector,” he stated.
Dr. Yusuf Dramani, the Country Director for IFDC Nigeria, stated that their organization is collaborating with NIRSAL to ‘Fill a significant void in Nigeria’s agricultural finance sector.’
Even though agriculture plays a crucial part in our country’s economic landscape and job market, gaining entry to conventional financing continues to be a major hurdle, particularly for those in the horticultural segment.
We think these challenges could become opportunities if financial institutions gain access to appropriate knowledge, tools, and risk management techniques. Consequently, this pelatihan isn’t merely relevant; it’s also strategically important,” he stated. “It aims to assist participating organizations in gaining deeper insights into various aspects of the horticulture sector—from cultivation through marketing, collection, manufacturing, and distribution.
Mohammed Salasi Idris, the Programme Director for HortiNigeria, stated that the organization’s objective is to ‘Secure funding up to six million euros’ and noted that they have surpassed 50% of this target.
When discussing primary challenges, Idris mentioned that the Central Bank of Nigeria’s Monetary Policy Rate (MPR), increased from 18% to 27%, posed a significant hurdle. He further noted that financial institutions would follow suit when the CBN establishes this rate.
He pointed out that one of the major challenges for farmers in southern Nigeria is the expense associated with hiring labor.
“Much of the labor reported to us originates from beyond our borders. You’re aware of what occurred with the Naira and the CFA Franc. They were beneficial for the past two or three years, but as soon as the Naira weakened compared to the CFA, most workers coming in from Benin and other French-speaking nations chose to go back home, making labor quite costly,” explained Idris.
Additionally, the Ambassador of the Kingdom of the Netherlands to Nigeria, Bengt van Loosdrecht, addressed the audience through his representative Mr. Folusho Adejoro, Policy Advisor for Food Security and Climate at the Embassy. He highlighted that horticulture has the potential to significantly boost economic development, create employment opportunities, and improve nutritional outcomes. He emphasized that access to financing should be an integral component of these efforts.
‘Many of our farmers, marketers, and business owners in this industry are putting in significant effort yet still struggle to access traditional financing,’ he noted. He added that the gathering aimed at ‘Creating connections between the financial world and the horticulture supply chain, enabling banks and various financial entities to gain deeper insights into the enterprises beyond just the figures, understanding the agricultural cycles behind monetary patterns, and recognizing the individuals driving these initiatives.’
Backed by the Embassy of the Kingdom of the Netherlands (EKN) in Nigeria, the HortiNigeria initiative (2021-2025) aims to foster the development of a comprehensive and environmentally friendly horticultural sector, which improves food and nutritional stability within the country.
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