Credit Crunch Stalls Nigeria’s Drive For Food Security
By OBIOMA TORI
EXPERTS warn that Nigeria’s food security goals are at risk as limited access to credit continues to hinder agricultural growth. Despite producing most of the nation’s food, smallholder farmers face steep interest rates, high collateral demands, and short loan cycles that prevent them from expanding or modernising their farms.
Dr. Ayoola Oduntan, President of FIPAN, said formal credit for agriculture remains “extremely limited,” urging government and private partners to adopt blended finance and risk-sharing models. He called for expanded credit guarantees, index-based insurance, and digital financing tools to de-risk lending and attract private capital.
Aolat Idowu-Agbelekale of Arcom Treasures advocated zero-interest loans, contract farming, and consistent policies to revive Nigeria’s agricultural competitiveness, while Sulaiman Taofeek stressed the need for dedicated microfinance banks and cooperative-based funding.
Stakeholders agree that without accessible, innovative financing, efforts to boost food production, reduce post-harvest losses, and achieve self-sufficiency may remain elusive.
