Poor funding, infrastructure crippling agric lending — CBN

Dr. Michael Ononugbo, the CBN Deputy Director and Special Assistant in the Office of the Deputy Governor, Economic Policy Directorate, has highlighted the challenges that limit access to finance for Nigerian farmers. These challenges stem from structural weaknesses, rather than a mere shortage of capital, according to Ononugbo. These weaknesses include inadequate infrastructure, poor funding for agricultural research, and inadequate infrastructure.

At the GP AgFin Nigeria conference, Ononugbo emphasized that smallholder farmers and rural enterprises face issues like fragmented landholdings, limited technology access, weak infrastructure, and volatile commodity prices. These factors make conventional lending models ineffective. The eight-year German-funded GP AgFin project, which reached 101,449 farmers across 10 states, demonstrated that with the right tools and institutional support, the financing gap can be reduced.

Ononugbo stressed the need to channel more financing into agricultural research to develop innovative solutions and boost productivity.