The National Agriculture Development Fund (NADF) has partnered with the Jigawa State Government to develop a sub-national agricultural lending de-risking framework, enhancing access to finance for smallholder farmers and agribusinesses.

The Executive Secretary of NADF, Mr Ibrahim Mohamed, stated on Tuesday at a workshop on Jigawa State Agricultural Lending De-Risking Model that the framework will enable farmers to access finance through innovative, state-led financial risk management mechanisms.

He stated that the initiative will help overcome the long-standing barriers that have constrained agricultural lending in Nigeria, and noted that although national financial bodies like theirs have performed well, a bottom-up approach led by state governments and tailored to their specific needs will have a greater impact.

“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.

The Director General of the Jigawa Agricultural Transformation Agency, Dr. Saifullahi Umar, reaffirmed the state’s dedication to advancing agricultural transformation through innovation, private sector involvement, and strategic partnerships.

He revealed 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. Despite these initiatives, Umar pointed out that the financing requirements of the state’s extensive 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,” he said.

Jigawa’s agricultural potential is enormous. With 2.4 million hectares of arable land, 3.6 million cattle, and over 6 million sheep and goats, the state is already one of Nigeria’s leading producers of rice, wheat, and sesame. It 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 noted.

The Head of International Partnerships NADF Naona Usoroh, said the framework, co-designed with technical support from Propcom+, is to align national agricultural plans and policies with 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 is expected to enhance transparency and attract private capital by ensuring that the state investments generate multiple inflows from development partners and financiers.

Director of Strategy, Dr Olumide Ojo, Propcom+, described the initiative as a crucial step in promoting inclusive finance and climate resilience. 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 template for other states, accelerating Nigeria’s agricultural transformation agenda and making a significant contribution to food security and rural development.