The Minister of Budget and Economic Planning, Senator Abdubakar Atiku Bagudu, has described the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) as a major game changer in Nigeria’s effort in agricultural financing.
The minister who spoke when he received members of the Mozambique Stakeholders in Agriculture Financing, who paid him a courtesy visit yesterday, in Abuja, said Nigeria’s approach to de-risking agricultural lending has yielded tangible results.
He said, “Through the integration of technology and the establishment of NIRSAL, we have significantly reduced the risk for lenders participating in agric-lending schemes.”
Bagudu said Nigeria’s innovative use of technology and institutions, such as the NIRSAL Plc to mitigate risks associated with agricultural lending, has been impactful..
He lauded the success of government-backed initiatives like the Anchor Borrowers Programme (ABP) and the Agricultural Credit Guarantee Scheme Fund (ACGSF) which have thrived despite initial criticisms.
The Minister informed the visitors of Nigeria’s journey towards achieving inclusive growth in the agricultural sector, stressing the pivotal role of institutions such as the Bank of Agriculture and NIRSAL Plc.
He underscored the importance of leveraging financial technology to streamline processes and enhance transparency in agricultural financing.
The Mozambican delegation led by the National Director for Promotion of Commercial Agriculture, Ministry of Agriculture, Mozambique, Jaime Robert Chissico expressed his admiration for Nigeria’s achievements in food production saying that they sought to learn from Nigeria’s experience in agricultural financing, with the hope of replicating similar successes in their country.
He also acknowledged Nigeria’s leadership role in Africa and expressed optimism about leveraging the Nigerian model to enhance agricultural financing in Mozambique.
Also speaking, the facilitating Project Consultant from Food and Agriculture Organization (FAO) Dr. Steve Ogidan, emphasized the importance of South-South Cooperation and underscored Nigeria’s progress in ensuring food security and inclusivity in agriculture.
Dr. Ogidan further emphasized on the significance of learning from Nigeria’s experience to advance food security goals in Mozambique.
The FAO Policy Officer for Africa, Mark Kofi Fynn, reiterated FAO’s commitment to supporting Sustainable Development Goal 2, aimed at achieving zero hunger.
He underlined the need for increased financing to transform the agricultural food system across the continent.