The Executive Secretary of NADF, Muhammed Abu Ibrahim, disclosed this during a media parley at the weekend in Abuja.
He said the Fund is working towards raising funds through grants and from the public and private sectors to bridge the funding gap.
He explained that although NADF was expected to be funded from the 5 percent import duty levy on rice, sugar, poultry, dairy, and livestock, they are no longer receiving the funds due to import duty waivers on some agricultural items by the President.
Ibrahim added that NADF also receives funding from the 0.05 percent allocation from the Natural Resource Development Fund, which is about 1.86 percent of the FAC allocation, as well as budget appropriations.
He noted that their mandate also allows them to raise capital from investors, which is disbursed to banks at low-interest rates.
The Executive Secretary said the need for accurate data to identify real farmers to ensure proper allocation of funds. He stated that the Federal Ministry of Agriculture and other critical stakeholders are currently collaborating with the Nigeria Bureau of Statistics (NBS) to gather accurate data.
He revealed that NADF has developed four frameworks tailored to address specific issues in the agricultural sector.
“The problems are real, and it’s important to develop solutions that will stand the test of time,” he said.
As a development fund, NADF is working towards providing credit facilities at lower interest rates. Ibrahim said their mandate includes providing funds to banks for onwards lending at reduced interest rates.
Regarding how smallholder farmers can benefit from their programs, Ibrahim explained that the three projects being launched are targeted at smallholder farmers.
These projects guarantee the offtake of their produce and provide them with infrastructure and inputs.
“A smallholder farmer can be given a processor that guarantees the offtake of their produce. We will be funding a farmer based on the guarantee of an offtaker.
“ We encourage processors to engage with communities through backward integration models, such as working with 4,000-5,000 farmers who supply their factories,” he stated.
Ibrahim disclosed that the fund has adopted six priority crops: rice, cowpea, cassava, oil palm, millet, and maize. It has also partnered with six research institutes across the six geopolitical zones and the National Agricultural Seed Council (NASC).
He explained that this model was adopted to ensure the provision of quality seeds to boost food production and tackle food insecurity, aiming to revolutionise seed systems.
Plans are underway to hold a meeting with the six research institutes, the National Agricultural Research Institute, and the NASC to explore how NADF can provide them with funding.
Additionally, the fund will collaborate with 10 foundation seed companies and 48 certified seed companies to share government plans and involve private seed companies to ensure Nigeria has sufficient quality seeds to revolutionise agriculture.
Ibrahim noted that most of NADF’s projects are tailored toward gender inclusivity and financial inclusion, targeting not just women but all underserved demographics.
