Targeted financing key to bridging Nigeria’s agricultural funding gap — Ayo Sotinrin

Bridging Nigeria’s agricultural funding gap requires more than just capital injection; it demands identifying the right beneficiaries and structuring appropriate financing mechanisms, according to Ayo Sotinrin, the Managing Director and Chief Executive Officer of the Bank of Agriculture (BOA).

Speaking during a recent appearance on the Nigerian Television Authority (NTA) flagship program, Good Morning Nigeria, Mr. Sotinrin emphasized that the Bank’s overarching mandate centers on driving sustainable developmental impact while maintaining strict measures for loan recovery.

“The core rule is to create impact first, and secondly, to recover the funds,” Sotinrin stated.

He noted that the primary obstacle in agricultural finance is not merely the availability of capital, but the precise targeting of recipients and the efficiency of the funding models employed.

To address this challenge, he revealed that the BOA has identified over 70 million smallholder farmers across the country.

Sotinrin explained that the institution is partnering with farmer aggregation companies to streamline loan disbursement and ensure effective management of resources.

Echoing similar concerns, the Head of Investment at the National Agricultural Development Fund (NADF), Olalekan Alabi, highlighted the Federal Government’s ongoing initiatives to overcome systemic bottlenecks.

According to Alabi, the government is tackling financing hurdles through concessionary loans and an integrated financing framework designed to connect smallholders directly with off-takers, processors, and aggregators.

Further strengthening this perspective, Shehu Bello, National Publicity Secretary of the All Farmers Association of Nigeria (AFAN), noted that the country’s agricultural sector does not suffer strictly from a liquidity shortage.

He noted that the persistent core challenges revolve around accurate beneficiary identification, physical accessibility to funds for real rural farmers, and establishing reliable mechanisms for loan repayment.