In its renewed efforts to reposition Nigeria’s horticulture sector, HortiNigeria has launched a capacity-building initiative for financial institutions to bridge the N660b financing gap in the industry.
The initiative, in partnership with the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), is aimed towards improving financial inclusion and to tackle key challenges in the sector, including 13 million metric tonnes deficit in vegetable production, post-harvest losses of up to 60 per cent, and a weak enabling environment for agribusiness development in the sector.
The Program Manager of HortiNigeria, Mohammed Salasi, at a four-day training workshop in Abuja, said the collaboration with NIRSAL was part of efforts to de-risk agricultural lending and attract more investment into the underfunded, but high-potential horticulture industry.
He explained that HortiNigeria is a four-year programme funded by the Embassy of the Kingdom of the Netherlands, implemented from November 2021 to October 2025 and implemented in Kano, Kaduna, Oyo, and Ogun states, with a focus to support smallholder and entrepreneurial farmers engaged in the production of vegetables such as tomatoes, peppers, onions, and cucumbers.
Salasi mentioned that the programme is targeted at increasing productivity and income for 60,000 smallholder farmers, as well as piloting of innovative approaches with 2,000 entrepreneurial farmers, adding that it also aims to facilitate €6m in financing and fostering over 100 business-to-business linkages to strengthen the value chain.
He highlighted some of the achievements of the programme to include training of 70,762 farmers, including 44,822 women and youths, increase crop yield by 77 per cent, 205 per cent increase in income, and an 83 per cent reduction in post-harvest losses among its beneficiaries.
According to him: “The programme has also contributed to policy reforms in seed regulation, tomato production, and post-harvest handling, including the adoption of plastic crate standards and improved storage infrastructure.
The Program Manager, however, mentioned that despite the progress made, the sector is still faced with challenges such as high interest rates (currently at 27.5 per cent), limited access to land for women in Northern Nigeria, and labor shortages in the South.
He highlighted investment opportunities in the sector to include the development of a N15.2b plastic crate industry, a projected $5.08b market for processed vegetables between 2025 and 2029, a potential investment worth up to $500m in climate-smart agriculture, noting that cold chain logistics gap also remains significant, with fewer than 1,000 available trucks compared to the 25,000 needed.
The High Commissioner to Netherlands Embassy, represented by the Policy Advisor Food Security and Climate of the Embassy, Foluso Adejoro mentioned that for horticulture to become a powerful driver of economic growth and better nutrition, there is a need to enhance access to finance.
He observed that many farmers, marketers, and entrepreneurs in the sector are working hard but remain invisible to formal finance, saying for change to happen, there is a need for better understanding of the sector by financial institutions.
Adejoro said: “That’s why this training matters. It’s about building bridges between the financial sector and the horticulture value chain, so banks can better understand the businesses behind the numbers, the seasons behind the cash flows, and the people behind the produce.”
While expressing their delight to partner with NIRSAL given their leadership in agricultural risk management finance, Adejoro expressed hope that the training will provide participating banks with the tools, insights, and networks needed to lead the way in horticulture finance in Nigeria.
The Minister of Agriculture and Food Security, Senator Abubakar Kyari, in his keynote address titled: “The Role of the Horticulture Sector in Improving Food and Nutrition Security in Nigeria,” commended HortiNigeria for pioneering new innovations and investments in the sector that is often referred to a sleeping giant.
He said: “I would like to specially commend HortiNigeria for its remarkable work in repositioning horticulture in Nigeria. As a flagship programme, it has trained tens of thousands of smallholder farmers, improved access to quality inputs, and facilitated partnerships that are bridging key financing and knowledge gaps. Its interventions in Kaduna, Kano, Ogun, and Oyo states are contributing directly to increased yields, better incomes, and improved nutrition outcomes.
“The Federal Ministry of Agriculture and Food Security applauds HortiNigeria’s commitment and encourage other stakeholders to emulate its results-driven approach,” he stated.
While acknowledging how the pricing of vegetables fuel food inflation, Kyari pointed out that the 2024 Nigeria Bureau of Statistics (NBS) revealed that spike in tomatoes led the food price index with a staggering 320 per cent year-on-year increase, followed by peppers and other produce. Hence the urgent need for more stable production, better storage, and accessible finance across the horticulture value chain.
Highlighting the fragility of the horticulture sector, he pointed out that the resurgence of a pest known as Tuta Absoluta or Tomato Ebola can decimate tomato crops within 48 hours, leading to a catastrophic yield loss.
The minister disclosed that the outbreak in Northern states, such as Kano, Kaduna, Katsina, early this year, destroyed hectares of tomato farms with an estimated loss of N1.3b, which consequently forced the price of a 50kg basket of tomatoes to increase from N5,000 to N30,000, exacerbating food inflation and straining house hold budgets.
He emphasised that the crisis highlights the urgent need for integrated pest management strategies, investment in resilient crop varieties, and enhanced support for farmers to safeguard our food supply chains.
Senator Kyari pointed out that although finance is the lifeblood of horticulture, yet the sector remains underfinanced, despite its potential, noting that the perception of high risk, due to perishability and price fluctuations, can be overcome with tailored products and better value chain understanding.
He therefore, urged financial institutions to map and understand the horticulture value chain – from seed to shelf, move beyond generic lending and develop tailored products aligned with the specific stages of the value chain, develop fit-for-purpose financial products, including seasonal credit lines, equipment leasing, invoice discounting, and trade financing.
The Managing Director and CEO of NIRSAL Plc, Sa’ad Hamidu, in his address titled: “De-risking and Funding Mechanisms for a Rewarding and Sustainable Horticulture Sector,” stressed the mismatch between agriculture’s contribution to Nigeria’s GDP and the fraction of bank lending it receives.
“Agriculture contributes about 24 per cent to Nigeria’s GDP, but receives only four per cent of total lending. This is not sustainable. Financial institutions must stop seeing horticulture as a high-risk venture and start seeing it as a profitable investment with the right risk management frameworks in place.
“Our mission has always been to fix broken agricultural value chains, reduce financing risks, and stimulate lending. We’re saying to banks, you don’t need to be afraid—with the right tools, horticulture can be a viable business,” Hamidu noted.
Hamidu highlighted NIRSAL’s role in bridging this divide through tools like Credit Risk Guarantees and Value Chain Mapping, noting that as of Q1 2025, NIRSAL has facilitated over N1.23tr in agricultural lending.
