FG Proposes Blended Finance to Close N3.4 Trillion Gap

The Federal Government of Nigeria, represented by Minister of Agriculture and Food Security, Idi Maiha, has called for the implementation of a blended finance model to tackle the country's N3.4 trillion agriculture financing gap. Speaking at an economic discourse event in Lagos, Maiha highlighted that livestock contributes 5.8% to Nigeria's GDP and is crucial for addressing protein deficiency.

He noted that access to agricultural finance remains a significant challenge for farmers, with interest rates as high as 23-25%, making it difficult for them to operate. The minister emphasized the need for financial institutions to create platforms that enable farmers to access financing at single-digit interest rates.

He also pointed out that the agricultural sector is under stress due to global challenges, including climate variability and inflationary pressures. Abubakar Kyari, another official, stressed that food security is foundational to socio-economic stability, and the government aims to improve access to inputs and mechanization for smallholder farmers.

The article concludes with a note from Dr. Hussein Gadain of the UN FAO, emphasizing the necessity of financial access for the agricultural sector's recovery.