Nigeria’s agricultural sector is poised for a significant transformation with the launch of a Large-Scale Agribusiness Financing Programme by the private sector. This innovative initiative aims to strengthen food security, drive economic growth, and reduce the country’s reliance on food imports.
The investment model, presented to the Federal Government during a high-level meeting, seeks to mobilize large-scale financing for the cultivation and processing of critical crops such as oil palm, rice, maize, cassava, sugar, and soybean. Representatives from KPMG and other private sector operators outlined the fund’s structure, which prioritizes private sector participation, transparency, and scalability.
The proposal aligns with the administration’s strategy to reduce Nigeria’s £3bn annual food import bill. By expanding mechanized farming and enhancing local refining capacity, the program aims to make Nigeria more self-sufficient in food production. The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and the Chief Executive Officer of the Ministry of Finance Incorporated, Dr. Armstrong Takang, welcomed the initiative, reaffirming the government’s commitment to fostering private-sector participation in agriculture.
The launch of the fund is expected to accelerate the expansion of mechanized farming across Nigeria, increase local food production, and create jobs within the agricultural value chain. The program also aims to address longstanding bottlenecks in the sector, including inadequate funding for large-scale farming, insufficient processing infrastructure, and post-harvest losses.
According to Dr. Muda Yusuf, Director of the Centre for Promotion of Private Enterprise (CPPE), “The private sector’s initiative to launch an agribusiness investment fund is a laudable step towards transforming Nigeria’s agricultural sector. This investment will not only boost food production but also create jobs and stimulate economic growth.”
Despite the potential benefits, there are challenges that need to be addressed. These include inadequate infrastructure, limited access to finance, and the need for capacity building among farmers. However, with the private sector taking the lead, there is optimism that these challenges can be overcome.
The launch of the agribusiness investment fund is a significant step towards transforming Nigeria’s agricultural sector. With the private sector taking the lead, there is hope that the country can achieve food security, reduce its reliance on imports, and stimulate economic growth.