Nigeria, Jigawa launch first sub-national agricultural lending de-risking framework
Nigeria’s drive toward food self-sufficiency and inclusive agricultural growth has received a significant boost as the National Agriculture Development Fund (NADF) and the Jigawa State Government jointly launched a groundbreaking initiative to create the country’s first sub-national agricultural lending de-risking framework.
The two-day co-design workshop, themed “Jigawa State Agricultural Lending De-Risking Model,” was held in Abuja on Wednesday. The event marks a major step in improving access to finance for smallholder farmers and agribusinesses through innovative, state-led financial risk management mechanisms aimed at boosting agricultural productivity and food security.
Speaking at the event, Mohammed Ibrahim, Executive Secretary of NADF, said the initiative represents a bold and practical solution to long-standing barriers that have hindered 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,” Ibrahim said.
He explained that while national-level financing bodies have made progress, a bottom-up approach led by state governments and tailored to their unique agricultural challenges will have a greater impact.
“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 gap between national and sub-national agricultural finance systems. The Fund, according to him, 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,” Ibrahim added.
Representing the Jigawa State Government, 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 disclosed that Jigawa State has invested nearly $30 million in agriculture over the past two and a half years, focusing on mechanisation, input financing, and rural infrastructure development. Despite this, he noted that the financing needs of the state’s agricultural sector, valued at N3.4 trillion, remain substantial.
“Our mechanisation 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,” Umar said.
Jigawa State, with 2.4 million hectares of arable land, 3.6 million cattle, and over 6 million sheep and goats, is one of Nigeria’s top producers of rice, wheat, and sesame. The state 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 added.
According to Naona Usoroh, NADF’s Head of International Partnerships, the framework is being co-designed with technical support from Propcom+. NADF is leading the process to ensure that the framework aligns with national agricultural plans, global best practices, and climate-smart agriculture 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 explained.
She highlighted that the model will focus on four main pillars: framework development, financial innovation, policy alignment, and institutional capacity building. The framework aims 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 State’s readiness to lead the pilot, supported by policy reforms under Governor Umar Namadi’s administration. Recent laws such as the Ministry of Livestock Development Law and the Jigawa Agricultural Transformation Service (JATS) Law have established strong institutional frameworks to industrialise agriculture, formalise livestock value chains, and promote climate-resilient practices.
The state’s 2024–2030 Agricultural Policy envisions transforming Jigawa into West Africa’s leading hub for agricultural production and processing, focusing on food security, youth and women empowerment, and private sector collaboration.
Under these reforms, the state has constructed over 800 kilometers of rural access roads, empowered more than 300,000 women and youth, and gained national recognition for leadership in agricultural innovation and productivity.
Olumide Ojo, Strategy Director at Propcom+, described the initiative as a critical move toward inclusive finance and climate resilience. He explained that the programme’s access-to-finance strategy is designed to build business readiness, enhance capacity, and create innovative financial products for underserved farmers.
If successful, experts say the framework could serve as a national model for other states, accelerating Nigeria’s agricultural transformation agenda while contributing significantly to food security, rural development, and sustainable economic growth.