Nigeria’s agric sector hampered by $182b funding gap – Stanbic IBTC boss

The Nigerian agricultural sector is said to be suffering from a $182 billion funding gap, making the country’s quest for food security a herculean task to accomplish. This is despite efforts by the government.

Chief Executive Officer of Stanbic IBTC Bank, Mr. Wole Adeniyi, who disclosed this at the bank’s 2024 Agribusiness Breakfast Summit held in Abuja, said agriculture is a vital contributor to the country’s economy, providing livelihoods for millions of Nigerians and contributing significantly to the Gross Domestic Product (GDP).

He said the theme of the Summit, which is “Driving Economic Transformation Through Agro-Processing: Building a Sustainable Future,” highlights the crucial role of agriculture, particularly agro-processing, in shaping Nigeria’s economy.

He noted that the true potential of agriculture lies beyond cultivation – “it’s in value addition, transforming raw products into high-quality goods that can compete both locally and globally,” he said.

The Stanbic IBTC boss said one of the major impediments to food security in Nigeria is post-harvest losses.

According to him, “The Nigeria Economic Summit Group (NESG) in its H1 2024 outlook report highlighted a significant gap in our tomato production. While annual demand is 2.2 million tonnes, we only produce 1.5 million tonnes annually, largely due to losses during post-harvest activities.”

The bank chief said that agro-processing has the power to unlock untapped potential, generate wealth, create jobs, and reduce post-harvest losses, positioning Nigeria as a leading agro-industrial hub in Africa.

“As a leading financial institution, Stanbic IBTC Bank is committed to supporting the agricultural sector,” he said. “We are providing much-needed financing for machinery and other inputs to improve productivity, reduce post-harvest losses, and bridge the financing gap.

“Transforming agriculture in Nigeria requires a multifaceted approach, addressing issues such as infrastructure, access to finance, technology adoption, and capacity building.

“We need to build a sustainable system that not only meets today’s needs but also ensures future generations can thrive.

“At Stanbic IBTC, we are proud to be involved in all these areas, offering financing, business training, fostering cross-border trade partnerships, and participating in initiatives like this summit to identify opportunities for growth.

“Together, we can enhance Nigeria’s agricultural landscape and make it a key driver of economic transformation and sustainable development.”

In his goodwill message, the Minister of Agriculture and Food Security, Senator Abubakar Kyari, commended the bold step taken by Stanbic IBTC in leading the call for greater investments in agriculture.

He said that the theme of the Summit aligns perfectly with President Bola Ahmed Tinubu’s declaration of a State of Emergency on food security and is also in line with the Renewed Hope Agenda geared towards promoting an agricultural revolution that will strengthen food and nutrition security and encourage industrialization for job creation and enhance the current capacity and growth in the non-oil sector.

While commending the commitment, consistency, and innovativeness of the management of Stanbic IBTC Bank for organizing the Summit and collaborating with relevant stakeholders to make today’s event a reality, the Minister said the initiative, institutionalized as an annual event, no doubt signals a promising future not only for agriculture but the overall economy of the nation.

According to him, “This Summit is one of the leading platforms dedicated to creating a convergence of private and public sector players, investors, and agricultural practitioners across the entire value chain, and I believe some of the key issues to be discussed will focus on employing appropriate technology and innovation in agro-processing for creating value addition to agricultural produce, recognizing local content, and access to capital by the investors.

“The benefits of this event are enormous as the growth of the agricultural sector through agro-processing will help increase export and income levels, create employment, food security, and diversification of the economy.”

The summit attracted participants from both the public and private sectors.