FirstBank, policymakers push for strategic agro-capital deployment

Financial institutions and agricultural sector stakeholders have urged a strategic shift towards long-term, patient capital to bolster Nigeria's agribusiness value chain and boost non-oil export growth. Speaking at the 5th FirstBank Agric & Export Expo in Lagos, industry leaders emphasized that traditional short-term commercial loans are insufficient for agricultural financing.

Lagos State Governor, Babajide Sanwo-Olu, highlighted the need for financing structures to align with planting, harvest, and processing cycles, noting that a successful harvest without financing cannot become a thriving business, and a good product without market access cannot succeed as an export. Sanwo-Olu called for financial institutions and agro-processors to prioritize local value addition, warning that exporting raw commodities limits economic prosperity.

FirstBank Group CEO, Olusegun Alebiosu, reaffirmed the bank's commitment to supporting the sector, stating that the institution is shifting its focus from high-level discussions to targeted execution and capital deployment. FirstBank Chief Economist, Chinwe Egwim, pointed out that despite agriculture contributing over 20% to Nigeria's GDP, it generates only 4.1% of total merchandise export earnings, indicating significant growth opportunities.

She advised agricultural exporters to shift from a commodity-first approach to a market-led strategy, tailoring products to international buyer specifications and certification needs. Brazilian Consul-General in Lagos, Ronaldo Vieira, shared insights on Brazil's two-century agricultural transformation, emphasizing the importance of integrated collaboration between public policy, research bodies, private finance, and farmers for sustainable agro-export expansion.

Governor Lucky Aiyedatiwa of Ondo State and his Niger State counterpart, Mohammed Umaru Bago, emphasized the need for a stronger focus on agricultural value chains, food production, and export-oriented investment, urging financial institutions and the private sector to move beyond primary production financing. They identified insecurity as a major constraint to agricultural expansion and highlighted access to land as another major obstacle to investment.