From Okwe Obi, Abuja
The Federal Government has said the country was in need of about $180 million to bridge the financing gap in the agricultural sector.
The government, through the Executive Secretary of Nigeria Agricultural Development Fund (NADF), Muhammed Abu Ibrahim, at a media yesterday in Abuja.
According to him, the agency is committed to raising funds through grants, public and private sectors investment to bridge the gap.
Ibrahim, noted that NADF was expected to be funded from the 5 percent import duty levy on rice, sugar, poultry, dairy, and livestock, but they are no longer receiving the funds due to import duty waivers on some agricultural items by the President.
He disclosed that the NADF also receives funding from the 0.05 percent allocation from the Natural Resource Development Fund, which is about 1.86 percent of the FAC allocation and budget appropriations.
Also, he there was a need for accurate data to identify real farmers to ensure proper allocation of funds, adding that that the Federal Ministry of Agriculture and Food Security, and other stakeholders are collaborating with the Nigeria Bureau of Statistics (NBS), to gather accurate data.
He revealed that NADF had developed four frameworks tailored to address specific issues in the agricultural sector.
“The problems are real, and it’s important to develop solutions that will stand the test of time.
“As a development fund, NADF is working towards providing credit facilities at lower interest rates. Ibrahim said their mandate includes providing funds to banks for onwards lending at reduced interest rates.
“Regarding how smallholder farmers can benefit from their programs, Ibrahim explained that the three projects being launched are targeted at smallholder farmers.
“These projects guarantee the offtake of their produce and provide them with infrastructure and inputs.
“A smallholder farmer can be given a processor that guarantees the offtake of their produce. We will be funding a farmer based on the guarantee of an offtaker.
“We encourage processors to engage with communities through backward integration models, such as working with 4,000-5,000 farmers who supply their factories,” he stated.