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First Trustees Limited has called for the development of sustainable financing models for Nigeria’s agricultural sector, saying long-term growth requires more than access to funding.
The Managing Director/Chief Executive Officer of the company, Ereifemi Akeredolu, said clear responsibilities, sound governance and proper allocation of risks were essential to attracting and retaining investment in the sector.
Akeredolu spoke in Lagos at the maiden Commercial Trust Colloquium organised by First Trustees Limited, a subsidiary of FirstHoldCo Plc.
The colloquium, with the theme, “Beyond Intervention Funds: Building Sustainable Financing Models for Nigerian Agriculture,” brought together stakeholders from the public and private sectors to examine alternative financing mechanisms for the agricultural sector.
She said while access to capital remained important, funding alone could not guarantee sustainable growth, noting that investors were more inclined to commit resources when risks were clearly understood and transaction structures were reliable.
“In my work across trust and financial services, I have seen that sustainable growth is rarely the result of funding alone. Capital moves more confidently when responsibilities are clear, risks are properly understood, governance is sound and all parties can rely on the structures around a transaction,” Akeredolu said.
According to her, trust institutions could contribute to the development of a more sustainable agricultural financing ecosystem by promoting accountability, protecting the interests of parties to transactions and ensuring compliance with agreed obligations.
She said these functions could help strengthen financing structures capable of supporting long-term investment across the agricultural value chain.
Discussions at the colloquium focused on financing models beyond government intervention funds, with participants examining issues relating to agricultural value chains, risk allocation, productivity and private-sector investment.
The stakeholders also explored ways to structure financing that could attract long-term private capital to viable businesses across the agricultural value chain.
Agriculture remains central to Nigeria’s food supply, employment and industrial activities, but access to sustainable and affordable financing continues to pose a challenge to businesses operating across the sector.
The event also featured the unveiling of an upgraded digital platform by First Trustees, which the company said would digitise some of its trust-service processes while reducing paperwork and documentation requirements.
