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By Okwe Obi, Abuja
The federal government and the Jigawa state government have launched a new agricultural de-risking scheme aimed at easing farmers’ access to credit, as mounting loan defaults and a tightening credit market threaten to stifle food production and rural livelihoods.
The move is also consistent with Nigeria’s efforts to achieve food self-sufficiency and inclusive agricultural growth.
The federal government is supporting the deal through the National Agriculture Development Fund (NADF).
It is the first-ever sub-national agricultural lending de-risking framework in the country and was launched at a two-day co-design workshop, themed “Jigawa State Agricultural Lending De-Risking Model,”.
Stakeholders say it marks a critical step toward improving access to finance for smallholder farmers and agribusinesses through innovative, state-led financial risk management mechanisms.
NADF Executive Secretary, Mohammed Ibrahim, explained that the initiative represents a bold, practical approach to overcoming long-standing barriers that have constrained agricultural lending in Nigeria.
“Persistent barriers to access to finance for smallholder farmers and agribusinesses cannot be overemphasized. If state-led mechanisms like this are put in place, those barriers can be easily surmounted.
“National-level financing bodies like ours have done well, but a bottom-up approach led by state governments, tailored to their peculiarities, will have greater impact,” Ibrahim stated.
Ibrahim emphasized that the NADF, established by an Act of Parliament in 2022, plays a statutory role in bridging the national and sub-national agricultural finance ecosystems. He said the Fund will continue to facilitate partnerships and provide technical guidance to ensure the success of the Jigawa pilot model.
“Our role is to bridge finance ecosystems and facilitate engagements for the entire agriculture sector. This is a bold initiative, and with the technical assistance of Propcom+ (a UKAid-funded programme), we will do our very best to ensure it succeeds,” he explained.
Representing the Jigawa State Government, the Director-General of the Jigawa Agricultural Transformation Agency (JATA), Dr. Saifullahi Umar, reaffirmed the state’s commitment to driving agricultural transformation through innovation, private sector inclusion, and strategic partnerships.
He disclosed that Jigawa State has invested nearly $30 million in agriculture over the past two and a half years, covering mechanization, input financing, and rural infrastructure. Despite these efforts, Umar noted that the financing needs of the state’s vast agricultural sector, valued at N3.4 trillion, remain enormous.
“Our mechanization program cost about $17 million, and input financing, especially for rice, was around $7 million. But government alone cannot meet the capital requirements of agriculture. We need to attract private investors and financial institutions into every link of the value chain, from input supply and production to processing, marketing, and distribution,” he said.
Jigawa’s agricultural potential is vast. With 2.4 million hectares of arable land, 3.6 million cattle, and over 6 million sheep and goats, the state is already one of Nigeria’s top producers of rice, wheat, and sesame. It currently produces 2 million metric tons of rice annually and aims to reach 4 million metric tons by 2030.
“That would not happen without the right financing. We must create an enabling environment and mechanisms that attract private sector investment and ensure sustainable financing for farmers,” Umar noted.
According to Naona Usoroh, NADF’s Head of International Partnerships, the framework is being co-designed with technical support from Propcom+, with NADF leading the initiative to ensure, among other things, that the framework aligns with national agricultural plans and policies, global best practices, and climate-smart principles.
“Our mission is to be Nigeria’s leading catalytic institution driving inclusive, resilient, and commercially viable agriculture. Through this initiative, NADF will help states like Jigawa develop de-risking models that ensure not only affordable but also sustainable financing for smallholder farmers,” Usoroh said. She explained that the model will focus on four key pillars: framework development, financial innovation, policy alignment, and institutional capacity building.
The framework is expected to enhance transparency and attract private capital by ensuring that every N1 of state commitment generates multiple inflows from development partners and financiers.
“We want to move away from one-off project financing to systems that sustain themselves. The idea is to create a catalytic effect that multiplies investment and ensures continuous access to affordable finance,” Usoroh added.
The workshop also highlighted Jigawa’s strategic readiness to lead the pilot, anchored on strong policy reforms under Governor Umar Namadi’s administration.
Recent legislation, such as the Ministry of Livestock Development Law and the Jigawa Agricultural Transformation Service (JATS) Law, has established institutional frameworks to industrialise agriculture, formalize livestock value chains, and promote climate-resilient practices.
Jigawa’s 2024–2030 Agricultural Policy further envisions transforming the state into West Africa’s leading hub for agricultural production and processing, emphasizing food security, youth and women empowerment, and private sector collaboration.
Under these reforms, the state has already constructed over 800 kilometers of rural access roads, empowered 300,000 women and youth, and attracted national recognition for leadership in agricultural innovation and productivity.
Dr. Olumide Ojo, Strategy Director at Propcom+, described the initiative as a crucial step in promoting inclusive finance and climate resilience. The programme’s access-to-finance strategy focuses on business readiness, capacity building, and innovative product design for underserved farmers.
If successful, the framework could serve as a national template for other states, accelerating Nigeria’s agricultural transformation agenda and contributing significantly to food security and rural development.
