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The Minister of Agriculture and Food Security, Mohammed Kyari, has urged stakeholders to embrace innovative financing models for agriculture, stressing that traditional credit systems can no longer meet the needs of the sector.
Kyari made this call on Tuesday while delivering the keynote address at the 2025 FirstBank Agric and Export Conference in Lagos, themed “The Fundamentals of Building a Non-Oil Export-Driven Economy.” He was represented by his Special Adviser (Technical), Ibrahim Alkali.
According to him, Nigeria’s ambition to diversify from oil to agriculture and other value-added exports requires fresh approaches to funding. “This is not an abstract policy debate; it’s a matter of national survival,” Kyari said. “Traditional loans, while well-meaning, don’t reflect the realities of today’s farming and export markets. We need performance-based mechanisms, risk-adjusted instruments, and stronger links between producers and investors.”
He identified innovative models such as revenue-sharing finance, agricultural loans with performance triggers, factoring forward contracts, equity financing, and pay-as-you-harvest schemes as practical solutions already transforming agriculture in other countries.
“By adopting these instruments, we can boost our export capabilities, stabilise the naira, and unlock opportunities for millions of Nigerians,” he added.
The Minister also emphasised the importance of moving up the value chain to maximise earnings. “Nigeria earns roughly $700 million annually from raw cocoa beans, but this figure multiplies fivefold when processed into finished products. Value addition strengthens our economy at home and enhances competitiveness abroad,” he said.
On logistics and standards, Kyari lamented that it often costs more to move goods from Kano to Lagos than from Lagos to Europe, citing port congestion, poor cold-chain systems, and weak compliance with global standards. He called for a zero-reject policy to ensure that all Nigerian exports meet international certification requirements.
Reiterating government’s commitment, Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, said the Tinubu administration is accelerating non-oil export growth to secure macroeconomic stability.
“Our currency is only as strong as our export sector. Every shipment of rice, catfish, or cashew directly supports reserves, strengthens the naira, and reduces inflationary pressure. Without robust non-oil exports, macroeconomic stability will remain out of reach,” Kyari concluded.
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