Nigeria’s Minister of Agriculture and Food Security, Mohammed Kyari, has urged a complete overhaul of traditional financing systems in the agricultural sector, advocating innovative funding models that can unlock the country’s full agribusiness potential and guarantee food security.
Speaking at the 2025 FirstBank Agric and Export Conference in Lagos, themed “The Fundamentals of Building a Non-Oil Export-Driven Economy,” the Minister, represented by his Special Adviser on Technical Matters, Ibrahim Alkali, said Nigeria must adopt modern financing mechanisms to strengthen agricultural productivity and reduce reliance on oil revenues.
Kyari emphasized that Nigeria’s future depends on shifting from oil dependency to value-added agriculture, warning that outdated credit systems are insufficient to power this transformation.
“This is not just an abstract policy debate—it is a matter of national survival,” he said.
“Nigeria cannot afford to remain vulnerable to oil price shocks.
We need to anchor our future on productivity, innovation, and resilience. That requires robust institutions and smarter financial instruments.”
The Minister called for a paradigm shift towards performance-based and risk-adjusted financing, pointing out that across the globe, creative funding models have transformed agriculture into an engine of wealth and industrialisation.
Among the mechanisms highlighted were:
Revenue-sharing finance models
Agricultural loans tied to performance triggers
Pay-as-you-harvest schemes
Forward contract factoring
Equity-based financing for agribusiness
“These are not theories; they are tested mechanisms working in countries that have transitioned from subsistence farming to global agricultural powerhouses,” Kyari added.
Kyari further stressed the need for Nigeria to move beyond raw commodity exports.
He illustrated how Nigeria earns about $700 million annually from cocoa beans, while processed cocoa products could fetch five times that value.
“Raw materials generate income, but processing creates industries, jobs, and foreign exchange.
Every step we take toward value addition strengthens our economy and boosts our competitiveness globally,” he said.
Logistics and global standards were also flagged as critical hurdles.
Kyari lamented that transporting goods from Kano to Lagos often costs more than shipping them to Europe, due to poor infrastructure and inefficiencies at the ports.
On her part, the Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, represented by the Nigerian Export Processing Council CEO, Mrs. Nonye Ayeni, reaffirmed government’s commitment to accelerating non-oil exports.
She highlighted the National Single Window initiative, a digital platform to streamline export processes, reduce bottlenecks, and improve transparency.
“If we don’t start transforming our raw agricultural output into globally recognised brands, we’re missing a massive opportunity,” Oduwole said.
“Non-oil exports must not only stabilize our currency but also create jobs, empower SMEs, and open global markets for Nigerian products.”
Private Sector Commitment
FirstBank’s Managing Director, Segun Alebiosu, in his opening remarks, positioned the bank as a committed partner in Nigeria’s economic diversification. He noted that FirstBank finances the entire agricultural value chain—covering production, processing, storage, and export—while also offering tailored financial solutions for agribusiness players.
“Our objective is not only to finance agriculture but to build partnerships that drive measurable impact—more jobs, more foreign exchange, and more resilience for the Nigerian economy,” Alebiosu said.
Lagos State Governor, Babajide Sanwo-Olu, called Lagos the “springboard for Nigeria’s export ambitions,” citing ongoing investments in infrastructure and logistics.
He urged participants to ensure the conference produced actionable strategies, not just discussions.
Similarly, Niger State Governor, Mohammed Bago, offered 100,000 hectares of farmland to Lagos State, branding it the “Lagos Farm” to directly supply food for the state’s growing population.
He argued that structured large-scale farming partnerships between states can boost food security, reduce imports, and increase national productivity.
Agriculture contributes about 25% of Nigeria’s GDP, yet the sector struggles with underinvestment, post-harvest losses, and limited access to global markets.
Experts argue that adopting innovative financing, upgrading logistics, and ensuring global compliance standards will not only stabilize the naira but also position Nigeria as Africa’s agricultural hub.
With the government, private sector, and subnational players now working in synergy, the push for innovative financing and non-oil export expansion may finally chart a sustainable pathway for Nigeria’s economic diversification.