From Okwe Obi, Abuja
The Federal Government, through the National Agricultural Development Fund (NADF), has launched a N1.5 billion pilot initiative to cultivate 1,500 hectares of farmland, targeting 1,500 smallholder farmers under the National Agricultural Development Programme (NADP-1).
This is done in partnership with Flour Mills of Nigeria (FMN) and NOVA Merchant Bank and was announced at a press briefing on Tuesday, June 24, 2025, in Abuja, to mark the maiden disbursement under NADF’s on-lending facility.
NADF Executive Secretary, Mohammed Ibrahim, explained that the scheme is designed to strengthen agricultural value chains, improve farmer productivity, and align with the Federal Government’s Renewed Hope Food Security and Market Priority Agenda, by President Bola Tinubu.
Ibrahim described the initiative as a model for inclusive agricultural financing, saying: “This programme demonstrates that smallholder farmers can be engaged in a profitable and sustainable way. Through aggregation, value chain partnerships, and strategic financing, we can transform agriculture into a viable engine for national development.”
Managing Director of FMN Agro, Sadiq Usman, emphasised the importance of improving yields and building resilient supply chains.
“This facility supports our core mission of transforming farmer profitability. A factory without a farm is scrap metal, and a farm without a factory is just wheat,” Usman said, citing maize cultivation in Kaduna State as the initial focus of the scheme.
“Kaduna produces 20% of Nigeria’s maize and is home to highly productive farmers. It’s a perfect ground for demonstrating how better seeds, nutrition, and agronomy practices can boost yields,” he added.
Representing NOVA Bank, Uzoma Ayonmike, Group Head of Corporate Banking, expressed optimism about the venture, saying: “Agriculture is a cornerstone of national growth. We are proud to be the first financial institution to disburse under the NADF pilot phase.
“This partnership is not just a transaction. It is a step toward food security, economic inclusion, and sustainable national progress.”
Head of Value Chain Banking at NOVA, Esosa Igbineweka, detailed the bank’s due diligence process in selecting FMN Agro as the programme’s implementing partner.
“NADF cannot lend directly to farmers, so we ensure any intermediary meets strict risk and performance criteria. FMN Agro has proven capacity and a strong record in engaging smallholder farmers,” he said.
On behalf of NADF’s investment division, Olalekan Alabi revealed that the initiative aims to scale beyond the initial 1,500 farmers to 10,000 before the end of the current wet season.
He highlighted maize, cassava, rice, soybean, and sorghum as priority crops with high-impact potential.
“This isn’t just a one-time project. It’s the beginning of a long-term drive to improve food security through sustained investment in smallholder farmers.
“The model also includes provisions for mechanisation, input access, and market linkage, positioning it as a comprehensive solution to long-standing barriers in Nigeria’s agricultural sector.
“The programme’s first deployment will begin in Kaduna, with FMN focusing on maize due to its strategic role in animal feed and food milling.
“The company, Nigeria’s largest buyer of maize, soybean, sorghum, and wheat, views this project as crucial for securing consistent raw material supply and advancing yield transformation,” he said.