NADF to boost agricultural funding with non-interest finance

The National Agricultural Development Fund (NADF) has begun validating its proposed Non-Interest Finance Framework and Guidelines to expand access to agricultural financing and align with the Federal Government's food security goals. The documents aim to offer diverse and innovative financing options for farmers, agribusinesses, and other players in the agricultural value chain, according to a statement issued by NADF.

Executive Secretary Mohammed Ibrahim emphasized that non-interest finance plays a vital role in Nigeria's financial system, providing ethical and risk-sharing financing models alongside conventional finance. The proposed framework would establish a transparent basis for delivering agricultural interventions through licensed non-interest financial institutions while adhering to governance, operational, and Shari’ah compliance standards.

The Director of the Development Finance Advisory Department at the Central Bank of Nigeria, Dr. Paul Oluikpe, welcomed the framework, highlighting its potential to bring an often-neglected aspect of agricultural financing into the mainstream.