Nigeria successfully reduced agric credit risks, says Bagudu
Kunle Sanni
The Minister of Budget and Economic Planning, Senator Abubakar Bagudu, has highlighted Nigeria’s impressive strides in agricultural financing in boosting the country’s agriculture sector.
The minister added that despite criticism, the government’s many agricultural loan programmes, such as the Agricultural Credit Guarantee Scheme Fund (ACGSF) and the Anchor Borrowers Programme (ABP), have proven successful.
The minister gave these highlights during a high-level policy meeting with the members of Mozambique Stakeholders in Agriculture Financing, who paid him a courtesy visit yesterday, in Abuja.
Bagudu emphasized Nigeria’s innovative use of technology and institutions, such as the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) to mitigate risks associated with agricultural lending, particularly in Africa’s largest economy.
Bagudu, while addressing the delegation, stated that Nigeria successfully reduced the risk associated with providing credit to farmers in the agricultural sector.
He lauded the success of government-backed initiatives like the Anchor Borrowers Programme (ABP) and the Agricultural Credit Guarantee Scheme Fund (ACGSF) which thrived despite initial criticisms.
In his words: “Nigeria’s approach to de-risking agricultural lending has yielded tangible results. Through the integrating technology and the establishment of NIRSAL, we have significantly reduced the risk for lenders participating in agric-lending schemes.”
The Minister elaborated on Nigeria’s journey towards achieving inclusive growth in the agricultural sector, stressing the pivotal role of institutions such as the Bank of Agriculture and NIRSAL Plc.
More so, he underscored the importance of leveraging financial technology to streamline processes and enhance transparency in agricultural financing.
The Mozambican delegation led by the National Director for Promotion of Commercial Agriculture, Ministry of Agriculture, Mozambique, Jaime Robert Chissico, expressed his admiration for Nigeria’s achievements in food production, saying that they sought to learn from Nigeria’s experience in agricultural financing, with the hope of replicating similar successes in their country.
He also acknowledged Nigeria’s leadership role in Africa and expressed optimism about leveraging the Nigerian model to enhance agricultural financing in Mozambique.
Also, the facilitating Project Consultant from the Food and Agriculture Organization (FAO) Dr Steve Ogidan, emphasized the importance of South-South Cooperation and underscored Nigeria’s progress in ensuring food security and inclusivity in agriculture.
Ogidan further emphasized the significance of learning from Nigeria’s experience to advance food security goals in Mozambique.
Mark Fynn, the FAO Policy Officer for Africa, reiterated FAO’s commitment to supporting Sustainable Development Goal 2, aimed at achieving zero hunger.
He underlined the need for increased financing to transform the agricultural system across the continent.
The visit of the Mozambican delegation underscores the growing recognition of Nigeria’s innovative approaches to agricultural financing, and sets the stage for enhanced collaboration in advancing food security and sustainable development across Africa.
