Minister of Agriculture and Food Security, Sen Abubakar Kyari, Tuesday, urged financial institutions to drive the nation’s horticultural subsector to boost food production and guarantee the health of Nigerians. Kyari made the call in his keynote address titled ‘The Role of the Horticulture Sector in Improving Food and Nutrition Security in Nigeria’ delivered at the ‘Capacity Building Training for Financial Institutions’ in Abuja, organized by HortNigeria in partnership with NIRSAL Plc. He pointed out that horticulture, often described as the ‘sleeping giant’ of Nigerian agriculture, holds immense promise that needs awakening, but there is the need now to ensure access to sustainable and well-structured financing, therefore,he commended HortiNigeria for organizing the workshop, and noted that HortiNigeria has trained tens of thousands of smallholder farmers, many of them women and youth, and now there is an improved access to quality inputs, and facilitated partnerships that are bridging key financing and knowledge gaps. The objective of the workshop include highlighting the critical role of financial institutions in strengthening Nigeria’s horticulture sector, equip financial institutions with the knowledge and tools needed to deepen their understanding of the horticulture value chain, manage sector-specific risks, and boost investment opportunities within the horticulture sector; Introduce risk management and de-risking strategies tailored to agribusiness; and support the development of tailored financial products for horticulture actors.
The HortiNigeria Programme, which is a Dutch-funded programme is being implemented in Kano, Kaduna, Oyo and Ogun States, kicked off on November 1, 2021 and will end in 2025. He said: “The effective functioning of the horticulture value chain depends on cross-cutting enablers such as: Functional cooperatives and aggregators: Access to market information and extension services; Rural infrastructure and cold chain development; Digital tools for supply chain management; Risk mitigation instruments such as crop insurance and credit guarantees; Climate-smart technologies; Public-private partnership; Barriers include land access, inadequate finance, poor rural roads, lack of structured markets, data gaps, and low adoption of good agricultural practices.
“Finance is the lifeblood of horticulture. Yet the sector remains under-financed, despite its potential. The perception of high risk—due to perishability and price fluctuations—can be overcome with tailored products and better value chain understanding.
“Let us address the recurring issues such as:;Limited awareness of horticultural economics High perceived risk due to perishability and price volatility; Informal marketing arrangements; Inadequate insurance and credit products tailored to the sector. I therefore urge 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. Partner with off-takers, farmer groups, and service providers to structure loans around aggregation models. Explore digital tools and fintech platforms for lending, data collection, and monitoring.Consider public-private blended finance mechanisms that reduce exposure and scale impact. A good understanding of the horticulture value chain by financial institutions is important to develop the sector. This will facilitate them to: Develop tailored financial products based on value chain stages and seasonality; Work with off-takers and aggregators to structure lending and reduce default risk; Use cluster-based approaches to reduce transaction costs and improve reach; Partner with government and DFIs for risk-sharing facilities and blended finance.
“Horticulture is not only a farming activity – it is a vibrant agribusiness ecosystem with scalable investment opportunities that can drive inclusive growth and food system transformation in Nigeria Horticulture is not simply a peripheral concern nor just a food production activity, it is a strategic sector and pivotal to our national development priorities. It is pivotal to feeding our nation, ending malnutrition, creating jobs and income, and pivotal to transforming Nigeria’s agriculture from subsistence to prosperity.
“Together, we can unlock the power of horticulture to nourish our people, build wealth, and drive inclusive, sustainable growth. By building your capacity and investing wisely in the horticulture value chain, you are not just financing crops you are financing livelihoods, nutrition, resilience, and inclusive growth and sowing the seeds for a healthier, wealthier, and more resilient Nigeria.” Programme Director, HortNigeria, Selassie Idris, on the sidelines of the workshop, said they are bringing onboard innovations in the horticultural subsector. “We have brought in banks here today to give them the technical understanding of the sector, it is a profitable sector, it is not as risky as they think, and then we hope at the end of this four-day capacity building on financing horticultural sector, the bankers will be able to kind of relax and then with a better understanding open up financing for the horticultural sector but specifically the vegetable sector. We are bringing innovations that help increase productivity by bringing in improved seed varieties, less use of water, land, and chemicals. So the innovations are several; in the north, open field cultivation. In the south, we also introduce agricultural production systems on the greenhouses, and then so far, we have been able to build capacities of several young people and young women in the four states that we are working, and we are getting the results from the increased yields and income of these people that we have worked with”, Idris said.
The Country Director, International Fertilizer Development Centre, IFDC, Nigeria, Dr Yusuf Dramani, in an address of welcome, explained that the capacity building was basically “to bridge a critical gap in Nigeria’s agricultural financing landscape. Despite agriculture’s prominent role in our national economy and employment, access to formal finance remains a significant barrier, especially within the horticulture sub-sector. According to data from the National Bureau of Statistics, agriculture receives only a fraction – 4.2% – of total commercial bank lending, with horticulture receiving an even smaller share due to perceptions of high risk, perishability, and seasonal uncertainties. “However, we believe that these challenges can be transformed into opportunities if financial institutions are empowered with the right knowledge, tools, and risk mitigation strategies. This training is therefore not just timely, but strategic. It will help participating institutions better understand the business operations, dynamics, and opportunities across the horticulture value chain—from production to marketing, aggregation, processing, and logistics. “Our collaboration with NIRSAL Plc reflects our commitment to facilitating a sustainable flow of finance and investment into agribusiness, especially in areas that have been traditionally underserved. We are confident that the expertise and experience that will be shared over the next four days—through class sessions and field exposure—will not only increase your capacity to design inclusive financial products but also expand your institution’s footprint in the agricultural finance space.”
