FG, HortiNigeria Advocate for Sustainable Financing in Nigeria’s Horticulture Sector
Government Calls for Long-Term Investment Strategies
The Federal Government has urged financial institutions to create sustainable financing models for smallholder horticultural farmers. Minister of Agriculture and Food Security, Senator Abubakar Kyari, made this appeal during a workshop organized by HortiNigeria in collaboration with NIRSAL in Abuja.
“We need financing that would afford farmers structured investments over a long period,” Kyari emphasized, highlighting the need for stable funding solutions in the sector.
Horticulture: A Key Driver of Economic Growth
Senator Kyari described horticulture—encompassing fruits, vegetables, herbs, spices, and ornamentals—as more than just an agricultural sub-sector. “It’s a dynamic engine for rural transformation, job creation, improved nutrition, and trade diversification,” he stated.
The minister noted the growing consumer demand for fresh produce due to urbanization and health consciousness, positioning horticulture to meet these needs. He also addressed how price fluctuations in staples like tomatoes and peppers significantly impact food inflation nationwide.
Addressing Food Inflation Challenges
“When prices of these staples spike, they affect meal costs across homes, restaurants, and food vendors,” Kyari explained, citing a 320% year-on-year increase in tomato prices according to 2024 NBS data. “This underscores the urgent need for stable production, better storage, and accessible finance.”
Collaborative Efforts to Bridge Financing Gaps
Dr. Yusuf Dramani, Country Director of IFDC Nigeria, revealed their partnership with NIRSAL to address agricultural financing challenges. “Despite agriculture’s economic importance, access to formal finance remains a significant barrier, especially in horticulture,” he noted.
Mohammed Salasi Idris, HortiNigeria’s Programme Director, shared their progress: “Our goal is to unlock €6 million in financing—we’ve already surpassed 50% of that target.” However, he identified the Central Bank’s Monetary Policy Rate increase to 27% and rising labor costs as major obstacles.
Labor Challenges in Southern Nigeria
“Most labor comes from neighboring countries,” Idris explained. “When the Naira weakened against the CFA Franc, many workers returned home, making labor more expensive.”
International Support for Horticulture Development
Bengt van Loosdrecht, Netherlands Ambassador to Nigeria (represented by Folusho Adejoro), emphasized horticulture’s potential for economic growth and nutrition improvement. “Access to finance must be part of the solution,” he stated, noting that many sector players remain “invisible to formal finance.”
The HortiNigeria program (2021-2025), funded by the Dutch Embassy, aims to develop an inclusive, sustainable horticulture industry to enhance Nigeria’s food and nutrition security.
Full credit to the original publisher: Daily Trust