CBN BLAMES POOR FUNDING, INFRASTRUCTURE FOR WEAK AGRICULTURAL LENDING

The Central Bank of Nigeria has identified inadequate funding and infrastructure as major challenges affecting agricultural lending and investment in the country.

The apex bank said the difficulties faced by farmers and financial institutions continue to limit access to credit and slow the growth of the agricultural sector.

Agricultural lending is often affected by challenges including limited access to affordable financing, poor transportation networks, inadequate storage facilities and other infrastructure gaps.

The CBN noted that these challenges increase the risks associated with lending to farmers, making some financial institutions more cautious about providing credit to agricultural businesses.

The situation is particularly significant for smallholder farmers, who often require financing to purchase inputs, expand production and improve their operations.

Improving access to agricultural finance could help farmers increase productivity, adopt modern farming methods and strengthen their participation in agricultural value chains.

The apex bank has continued to implement various initiatives aimed at supporting agricultural financing and encouraging lending to productive sectors of the economy.

Stakeholders have also called for stronger collaboration between government agencies, financial institutions and private-sector players to address infrastructure challenges affecting agriculture.

The CBN stressed that improving infrastructure and expanding access to funding would be important for unlocking the sector’s potential, increasing food production and supporting economic growth.

The development comes amid ongoing efforts to strengthen Nigeria’s agricultural sector and reduce food supply pressures.