Nigerian Agricultural Financing Programme

active

There are many reasons for the inadequate development of agriculture in Nigeria. They range from inadequate seed quality, a lack of mechanized cultivation of the soil, cultivation methods that need to be improved, a lack of processing and storage capacity and poor infrastructure. Apart from that, the lack of access to appropriate financial services is one of the main bottlenecks for the development of the agricultural economy. The project aims to provide a new financing instrument for the private sector-oriented agricultural economy in Nigeria and thereby give micro, small and medium-sized enterprises (MSMEs) in particular access to financial services. This is intended to contribute to the realization of the immense potential of the Nigerian agricultural economy. The Nigerian Fund for Agri-Finance in Nigeria (FAFIN) aims to increase the income and performance of the actors along the entire agricultural value chain, which should be reflected in particular in increases in the productivity of small-scale farming operations. FAFIN is a fund under Mauritian law and is managed by a fund manager based in Nigeria. The product range includes loans, mezzanine financing and equity investments. Beneficiaries are primarily small and medium-sized agricultural companies such as suppliers of seeds and fertilizers and processing companies, but also cooperatives and other producer communities. The accompanying measure (TA Facility) of FAFIN aims to promote the development and growth of the companies in which FAFIN invests. This is done primarily through support measures in the formulation of the corporate strategy, through technical and agronomic advice and support in the sustainable integration of producers and other actors in the value chains.