Alternative Bank Unveils New Plan to Expand Financing for Farmers

News in Brief:

-The Alternative Bank is championing ethical, non-interest financing models like Mudarabah and Musharakah to make agriculture more equitable and sustainable in Africa.

-Its approach prioritises farmers’ welfare, renewable energy adoption, and resilience-building in food production over profit-driven lending.

The Alternative Bank, Nigeria’s leading non-interest financial institution, has unveiled a new framework aimed at transforming agricultural financing across Africa. The model, which emphasises fairness, transparency, and shared prosperity, was announced at the Agriculture Summit Africa 2025 in Abuja.

Executive Director (North), Garba Mohammed, said the framework will put farmers, not financiers, at the centre of the continent’s food security journey. Represented by his Chief of Staff, Azeez Badru, Mohammed noted that the prosperity of Africa depends on how food is financed as much as how it is produced.

Reclaiming Africa’s Food Destiny

Speaking on the summit’s theme, Survival of the Greenest: Reclaiming Africa’s Food Destiny, Mohammed said true transformation will not come from technology alone but from innovative financing. He stressed that money should serve humanity, not the other way around.

Amid Nigeria’s food crisis, the bank is pioneering an ethical, transparent, and inclusive financing model designed to fund productivity rather than speculation.

“Agriculture is a national responsibility,” he stated. “Every loan, every partnership must feed families, preserve the land, and build resilience.”

Non-Interest Models for Fair Financing

The bank’s approach draws from Islamic non-interest finance models, such as:

• Mudarabah (profit-and-loss sharing)
• Musharakah (equity partnership)
• Ijara (lease-to-own financing)
• Murabaha (cost-plus trade finance)

These models distribute risk and reward fairly across the agricultural chain, empowering farmers, processors, and distributors while discouraging exploitative lending.

Beyond Capital: Financing Sustainability

Mohammed highlighted that the bank’s support extends beyond funding. It includes investments in renewable energy for irrigation, solar-powered cold storage, and waste-to-value innovations. These initiatives aim to lower environmental impact while boosting productivity and income for farmers.

“The survival of the greenest challenges us to build systems that reward stewardship over speculation and to finance not just growth, but good,” Mohammed added.

The Alternative Bank reaffirmed its commitment to transforming Africa’s food systems through ethical, inclusive finance. The institution called on investors, innovators, and policymakers to join hands in placing farmers at the heart of agricultural transformation.

“We’re leading this charge,” Mohammed said, “and we welcome farmers, off-takers, partners, and all who believe finance should build fair, resilient food systems.”