NADF, GERMAN PARTNER UNVEIL PLAN TO EXPAND CLIMATE-SMART FARM FINANCING

The National Agricultural Development Fund has partnered with a German development organisation to strengthen financing for climate-resilient agriculture in Nigeria. The collaboration is aimed at improving access to funding for farmers and agribusinesses while helping them adopt farming methods that can withstand the growing effects of climate change.

The initiative focuses on developing financial products that respond to the risks faced by farmers, including unpredictable rainfall, extreme weather and other climate-related challenges. NADF is seeking to combine public and private financing with tools such as credit guarantees, insurance and other risk-sharing mechanisms to make agricultural lending more attractive to financial institutions.

NADF Executive Secretary, Mohammed A. Ibrahim, has stressed that Nigeria cannot transform its agricultural sector through government funding alone. The Fund is therefore positioning itself as a catalyst that can bring together government institutions, development partners, commercial lenders, insurers and investors to create financing structures capable of directing more capital into agriculture.

The partnership is also expected to support smallholder farmers and agribusinesses operating across important agricultural value chains. By linking financing with climate-smart practices, the initiative aims to improve productivity, reduce the risks associated with lending to farmers and strengthen the ability of agricultural businesses to cope with climate shocks.

The development comes as Nigeria seeks to close its agricultural financing gap while improving food security and reducing the vulnerability of farmers to climate change. NADF has said its broader financing strategy will focus on attracting private capital, strengthening agricultural value chains and creating sustainable funding models that can support long-term growth in the sector.