Nigeria’s quest for food self-sufficiency and inclusive agricultural growth has received a significant boost as the National Agriculture Development Fund (NADF), in collaboration with the Jigawa State Government, launched the nation’s first-ever sub-national agricultural lending de-risking framework.
The initiative aims to unlock private-sector financing, enhance smallholder farmers’ access to credit, and drive food security and sustainable agricultural transformation.
The two-day co-design workshop, themed “Jigawa State Agricultural Lending De-Risking Model,” marks a pivotal step towards improving access to finance for smallholder farmers and agribusinesses through innovative, state-led financial risk management mechanisms.
Speaking at the event, the Executive Secretary of the NADF, Mohammed Ibrahim said; “the initiative represents a bold and practical response to the long-standing barriers constraining agricultural lending in Nigeria.”
“Persistent barriers to access to finance for smallholder farmers and agribusinesses cannot be overemphasised. 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.
He noted 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. The Fund, he said, 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, Dr Saifullahi Umar, Director-General of the Jigawa Agricultural Transformation Agency (JATA), reaffirmed the state’s commitment to agricultural transformation through innovation, private-sector inclusion, and strategic partnerships.
He said that Jigawa has invested nearly $30 million in agriculture over the past two and a half years, covering mechanisation, input financing, and rural infrastructure. Despite this, Umar noted that the financing needs of the state’s vast agricultural sector—valued at ₦3.4 trillion—remain enormous.
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“Our mechanisation programme 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, it ranks among Nigeria’s top producers of rice, wheat, and sesame.
The state currently produces 2 million metric tonnes of rice annually and aims to double that figure to 4 million tonnes 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.
NADF’s Head of International Partnerships, Naona Usoroh said the framework is being co-designed with technical support from Propcom+, ensuring it aligns with national agricultural plans, 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, she ssid, is designed to enhance transparency and attract private capital by ensuring that every ₦1 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 showcased Jigawa’s strategic readiness to lead the pilot, anchored on strong policy reforms under Governor Umar Namadi’s administration.
Recent legislation, including the Ministry of Livestock Development Law and the Jigawa Agricultural Transformation Service (JATS) Law, has established institutional frameworks to industrialise agriculture, formalise livestock value chains, and promote climate-resilient practices.
Jigawa’s 2024–2030 Agricultural Policy envisions transforming the state into West Africa’s leading hub for agricultural production and processing, emphasising food security, youth and women’s empowerment, and private-sector collaboration.
Under these reforms, the state has constructed over 800 kilometres of rural access roads, empowered 300,000 women and youths, and earned national recognition for leadership in agricultural innovation and productivity.
Strategy Director at Propcom+, Dr Olumide Ojo, described the initiative as a crucial step in promoting inclusive finance and climate resilience.
He noted that 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 model for other states, accelerating Nigeria’s agricultural transformation agenda and contributing significantly to food security and rural development.