CBN's Ononugbo Addresses Agricultural Finance Challenges

Dr. Michael Ononugbo, Deputy Director and Special Assistant in the Office of the Deputy Governor, Economic Policy Directorate at the Central Bank of Nigeria (CBN), stated that poor funding for agricultural research and inadequate infrastructure are significant barriers to financial access for Nigerian farmers. Speaking at the National Close-Out Conference of the Global Project for the Promotion of Agricultural Finance for Agri-based Enterprises in Rural Areas (GP AgFin Nigeria) in Abuja, Ononugbo noted that the agricultural finance gap stems from structural weaknesses rather than just a lack of capital.

He highlighted challenges faced by smallholder farmers, including fragmented landholdings, limited technology access, and inadequate storage facilities. Ononugbo criticized past policies for focusing on increasing credit supply without ensuring that financing aligns with farmers' realities.

He called for greater investment in agricultural research to foster innovation and productivity. The GP AgFin project, funded by Germany, has supported over 101,000 farmers across 10 states.