Agricultural finance initiatives target credit gaps in Nigeria and Ghana

agricultural finance smallholder farmers non-interest finance food security agribusiness lending

Agricultural stakeholders in Nigeria and Ghana are addressing systemic barriers to farm credit. In Nigeria, the Global Project Promotion of Agricultural Finance (GP AgFin Nigeria), funded by Germany, has disbursed approximately €53.9 million (N61 billion) to over 101,000 farmers and agribusinesses over eight years. Despite this, the Central Bank of Nigeria has noted that structural weaknesses—including poor research funding, inadequate infrastructure, fragmented landholdings, and climate vulnerability—continue to hinder formal lending.

To expand financial access, Nigeria’s National Agricultural Development Fund (NADF) has begun validating a proposed Non-Interest Finance Framework. This initiative aims to provide ethical, asset-backed, and risk-sharing financing models to complement conventional banking.

In Ghana, the Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL) highlighted that credit availability alone is insufficient. Officials emphasized that smallholder farmers require cheaper credit alongside technical support to manage production risks, market volatility, and inadequate business records, which currently make the sector appear high-risk to formal financial institutions.