FirstBank, policymakers push for strategic agro-capital deployment

Financial and agricultural stakeholders are advocating for a shift towards structured, long-term capital to bolster Nigeria's agribusiness value chain and stimulate non-oil export growth. At the 5th FirstBank Agric & Export Expo in Lagos, industry leaders emphasized that traditional short-term loans are insufficient for agricultural financing, stressing the importance of aligning credit structures with planting, harvest, and processing cycles.

Lagos State Governor, Babajide Sanwo-Olu, highlighted the need for financial institutions to adapt to the unique operational realities of agribusinesses, stressing that without financing, a good harvest cannot become a business and a good product cannot become a successful export. Sanwo-Olu urged financial institutions and agro-processors to prioritize local value addition, warning that raw commodity exports limit economic prosperity.

FirstBank CEO, Olusegun Alebiosu, reaffirmed the bank's commitment to supporting the sector by shifting its focus to targeted execution and capital deployment. FirstBank Chief Economist, Chinwe Egwim, noted that despite agriculture's significant contribution to Nigeria's GDP, it only generates a small percentage of total merchandise export earnings, creating opportunities for growth when capital connects various value chain aspects.

Brazilian Consul-General, Ronaldo Vieira, shared insights from Brazil's agricultural transformation, emphasizing the importance of integrated collaboration between public policy, research, private finance, and farmers for sustainable agro-export expansion. Governors from Ondo and Niger states called for stronger focus on agricultural value chains, food production, and export-oriented investment, outlining investment opportunities in their respective states and urging financial institutions and the private sector to move beyond primary production financing.