Agriculture
CBN To Raise Lending Profile To Agric Sector
The Central Bank of Nigeria (CBN) may raise the profile of commercial banks leading to agricultural sector from three to ten per cent in the next five years going by hints from the Nigeria Incentive Risk Implementation office (NIRSAL).
Head of the NIRSAL, Jude Uzonwanne who made the disclosure in an interview with newsmen in Enugu recently said as an agro-based business financing arm of the apex bank was established more than a year ago to respond to challenges identified in agriculture over the past 20 years.
He said the aim was to address the challenges and boost food production, adding that the programme was in partnership with CBN, the commercial banks, ministries of agriculture, finance, trade and investment.
He said the programme cold achieve the set target in less than five years based on the successes recorded so far. Uzonwanne pointed out that N75bn was set aside as lending capital for agriculture to farmers in the country out of which N45bn would be used as risk fund to issue guarantee to banks in case of any loan default by farmers.
“So roughly the ratio is that for every one naira in guarantee that we issue to a bank that triggers about ten naira in loans.
“So based on the size of our guarantee fund today of N45bn, it means that banks can comfortably lend N450bn in agricultural loans which is roughly based on our calculations.
“Every circle, Nigerian farmers and agric business companies require roughly about N500 to N600bn in loans and so with the capacity we have today, we can comfortably cover through commercial lending all of the loan requirements for banks” he said.
He explained that the fund which would be market-driven would cover all aspects of agriculture from input procurement to technical advice; extension workers, provision of rural infrastructure, processing and ensuring that farmers had access to market for their produce.
This the farmers attributed to inadequate pest control facilities, lack of in-depth managerial skills, crisis, Climate control and other factors.
These were the observations of the farmers during the training of 6000 Cassava farmers and facility tour both at Fashola Agribusiness hub and Iseyin.
The training was coordinated by the African Agricultural Technology (AATF) Foundation and National Crops Research Institute, Umudike, Abia state, funded by Germany based Foundation.
The project coordinator of AATF, Samuel Ogunleye said the training has benefited the farmers immensely.
According to him, ‘the training is designed to benefit 6,000 Cocoa farmers in the 33 local government areas of the state.
‘The programme was incubated in 2023 but inaugurated in 2024. The programme has taken place in Ido and Ibarapa areas with the training of over 1,200 farmers.
‘Today similar programme is taking place here in Iseyin with over 2,000 farmers in attendance.
Farmers are being trained on how to increase their output as well gets it to the market through modern technology.
‘In Iseyin, there is a modern Cassava processor machine aimed at easing the processes.
‘The local farmers have access to the processor at a subsidize rate. Also, the foundation is assisting them at getting their products to the market”.
In his own presentation, the team leader, National Root Crops Research Institute, Dr. Adeyemi Olojede said the training was designed to address the decline in the
production of Cassava nationwide.
He said: ‘The training is designed for the off season in order to allow active participation of farmers.
‘Some of the challenges confronting the farmers are tabled while the solutions are proffered.
On the issue of funding, the University don blamed successive administrations in the Country for paying lip service to the sector.
According to him, the Research Institutes in the Country have not been able to access the Budget in the past five years.
The researchers are using their personal contacts to access funds from local and international organization to carry out research.
The All Farmers Association of Nigeria (AFAN), Lagos State Chapter, has lauded the Federal Government’s approval of 57 crop varieties to strengthen agricultural productivity in the country.
The Lagos State AFAN Chairman, Mr Sakin Agbayewa, disclosed this in an interview with the Newsmen, Wednesday in Lagos.
Reports said that in March 2026, the Federal Government approved 57 new improved crop varieties to boost food security, improve nutrition, and strengthen agricultural productivity.
The crops, selected for early maturity, higher yields, and resistance to pests and diseases, include 14 different types of staples, with notable advancements in rice, maize, yam, soybean, and plantain.
Agbayewa noted the approval of the crop varieties would help improve the yields of farmers in the state.
“We are excited to hear about the 57 new varieties of crops recently approved.
“What we desire currently in crop farming is not just about planting, it is about increased yield.
“A farmer can have a plot of land and have a high yield and another can have big plots of land and have a low yield.
“So, if when are talking about food security, it starts from the varieties you are planting and it starts from the seedlings”, Agbayewa said.
He described the introduction of the crops as a new development for crop cultivation.
“This newly approved 57 crop varieties should however be popularised among local farmers because not everyone is aware of this latest development.
“There are lots of issues currently affecting the cultivation of crops and the development of improved crop varieties will help the farmer’s productivity.
“Issues such as climate change effects, inconsistent rainfall patterns and weather clash among others are affecting farmers’ yield,” he said.
Agbayewa said there should be massive advocacy of the approved crop varieties across the board for farmers, adding, “The government is now waking up to their responsibility. So, we are”
The event, with the theme “Aligning Science, Enterprise, and Policy to Scale Insect-based Feed Solutions,” brought together policymakers, researchers, regulators, private investors, and BSFL farming entrepreneurs to map out strategies for integrating insect protein into Nigeria’s agricultural system.
According to him, black soldier fly larvae can feed on organic waste including market and kitchen refuse and develop into high-protein feed within 10 to 14 days.
“It contains about 40 to 45 per cent protein, making it a viable alternative to some protein source feed ingredients in poultry, fish, and pig feed ration if produced sustainably” he said.
Amole noted growing interest from feed manufacturers, stressing that supply, not demand remains the major constraint
“The question now is who can produce at commercial scale,” he added.
He also highlighted Nigeria’s comparative advantage, citing its tropical climate and abundant organic waste, which support year-round production without the need for expensive temperature control systems.
He however emphasised the need for standardisation to ensure consistency in nutrient quality and safety across producers.
Also speaking, a Senior Scaling and Innovation Expert from the institutes ‘headquarters in Nairobi, Dr. Ijudai Jasada, identified fragmentation within the BSFL value chain as a major barrier to scale.
“We need a coordinated system that connects all actors and reduces inefficiencies,” he said.
Stakeholders at the Roundtable reached a consensus that ILRI should take the lead in establishing and championing a national platform on BSFL.
Jasada said plans are underway to establish a national coordination platform to improve collaboration, attract investment, and support long-term growth of the sector.
He said the goal is to integrate insect-based feed into Nigeria’s mainstream feed industry by 2030, while creating employment opportunities for women and youth.
On capacity development, Prof. Cordelia Ifeyinwa Ebenebe of Nnamdi Azikiwe University acknowledged ongoing training efforts by development partners and institutions but warned that Nigeria’s regulatory framework for insect-based feed remains underdeveloped.
She noted that standards are still evolving and are expected to align with benchmarks being developed by the African Organisation for Standardisation.
Similarly, Prof. Olugbenga Adeniran Ogunwole stressed the importance of safety assurance and regulatory clarity, warning that policy gaps could hinder large-scale adoption.
He identified key challenges, including variability in nutrient composition, digestibility concerns linked to chitin content, and relatively high production costs.
A BSFL producer, Mr. Kolawole Ogunleye, said large-scale production remains difficult due to limited access to equipment, financing, and infrastructure, adding, “The process is labour-intensive, and most of the equipment is still imported,” he said.
From the private sector, Mr. John Amole, Country Representative of New Generation Nutrition (NGN), described insect protein as a growing but still underutilised solution in Nigeria.
He noted that although insect meal has been approved as a feed ingredient, it has yet to gain widespread market acceptance.
“There is interest, but the ecosystem is still developing, and there are no guaranteed off-takers,” he said.
Sharing international experience, Ms Talash Huijbers of InsectiPro, Kenya, highlighted the success of circular economy models that convert organic waste into protein and fertiliser.
The roundtable concluded with key recommendations, including the establishment of a clear legal framework for insect-based feed, financial incentives for startups, standardised substrates, integration into national waste management systems, and increased funding for research and extension services.