Public funds not enough to finance agriculture — CBN

The Central Bank of Nigeria (CBN) has revealed that public funds alone are insufficient to cover Nigeria's agricultural financing requirements, urging increased private-sector investment to tackle funding shortages, enhance productivity, and bolster food security. CBN Governor Olayemi Cardoso conveyed this message during his keynote address at the National Stakeholder Roundtable on Strengthening Agricultural Credit Guarantees in Abuja.

Cardoso, speaking on behalf of Deputy Governor Lamido Yuguda, emphasized the necessity of sustainable financing arrangements that attract commercial investment and mitigate agricultural lending risks. He emphasized that the public sector alone cannot meet the scale of Nigeria's agricultural financing needs, and thus, strategic use of public resources is required to unlock larger volumes of commercial and development finance.

Cardoso outlined four key priorities for strengthening agricultural financing, which include institutional coordination, climate-risk management, digital transformation, and private capital mobilization. He called for greater collaboration among commercial banks, microfinance banks, insurers, development finance institutions, and government agencies to streamline credit delivery and reduce fragmentation.