About 20 million people in Nigeria get their main source of income from subsistence/ commercial farming. Many of these people have no or limited access to finance. The resulting gap between the supply and demand of agricultural finance is estimated at a minimum of USD $4billion per annum.
The African Competitive Rice Initiative (CARI) and Green Innovation Centre for the Agriculture and Food Sector (GIAE) engage in enhancing the access to finance for small-holder famers by cooperating with private and public banks to increase awareness of the sector’s needs and the opportunities agricultural lending offers. For this purpose two trainings for Agricultural Value Chain Financing for bankers were organized in Lagos and Abuja. The main objectives are to improve the understanding of management principles of agriculture as a business with a focus on primary producers, their characteristics, objectives and the management of production factors along the production cycle. The training also covers value chain financing/services and business models for sustainable and commercially viable agricultural enterprises.
43 representatives from various private commercial and microfinance banks as well as from public banks and from the Federal Ministry of Agriculture and Rural Development participated. The overall feedback was very positive and CARI received numerous requests for further trainings. The next training is planned for January 2017.