The use of new technologies and value-chain approaches in financing agribusinesses in Nigeria and Africa is expected to play a crucial role in feeding the predicted 9 billion people in the world by 2030.
This became very clear at the recently concluded global forum on “Revolutionising Finance for Agricultural Value Chains in Africa’’ held at the Kenya School of Monetary Studies in Nairobi, Kenya.
At the forum tagged ‘Fin4Ag,’ which had representatives of Nigerian banks and financial institutions from many African nations in attendance, innovative financing driven by ICT tools and value-chain approaches were shown to be the only viable options for banks to realise their projected financing targets for the agric sector in their various countries. Information and Communication Technology (ICT) and value-chain approaches would no doubt be needed by banks in Nigeria to give the expected N600 billion in 2014, and N800 billion in 2015, to finance agribusinesses in the country.
Minister of Agriculture and Rural Development, Akinwunmi Adesina, stated at the forum that Nigeria’s bank lending to the agric sector was expected to reach 7.5 percent in 2014, and 10 percent by 2015. With banks’ annual total lending portfolio standing at over N8 trillion, the agric sector is expected to get N600 billion this year and N800 billion in 2015.