HortiNigeria Secures ₦500m, 50% Credit Guarantee to Support Tomato Farmers

News in Brief:

-The Federal Government has approved a 50% Credit Risk Guarantee for plastic crate financing, unlocking over ₦500 million for Nigeria’s tomato farmers.

-Adoption of plastic crates is expected to reduce post-harvest losses, improve produce quality, and strengthen the horticulture value chain.

Tomato farmers across Nigeria are set to benefit from a game-changing policy move as the Dutch-funded HortiNigeria programme announces a 50% Credit Risk Guarantee for plastic crate financing.

The initiative, backed by the Federal Government, is expected to unlock over ₦500 million in special intervention funding, enhancing the efficiency and profitability of Nigeria’s tomato sector.

The development is a major step in modernising the country’s horticulture industry, improving post-harvest handling, and reducing the heavy losses that have long plagued tomato farmers from northern states such as Kaduna and Kano to southern markets.

Credit Guarantee Boosts Farmer Confidence

Mohamed Salasi Idris, Country Representative of the International Fertiliser Development Centre (IFDC) and Programme Director of HortiNigeria, disclosed the achievement during the 47th Regular Meeting of the National Council on Agriculture and Food Security (NCAFS) at Murtala Square, Kaduna.

He explained that the Credit Risk Guarantee (CRG) coverage for tomato crate financing has risen from 30% to 75% within a year, thanks to the support of the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).

“This development will strengthen the supply chain and enable more farmers and crate producers to access financing,” Idris said. “With increased CRG coverage, lenders are more confident to provide credit, which in turn reduces the risk of post-harvest losses and boosts overall productivity.”

Plastic Crates Reduce Post-Harvest Losses

Traditional raffia baskets have long contributed to high post-harvest losses in Nigeria’s tomato sector, with farmers losing almost half of their produce during long-distance transport to major markets such as Lagos. Idris noted that the adoption of plastic crates is central to changing this trend.

“Previously, farmers lost nearly half of their produce when transporting tomatoes from Kaduna or Kano to Lagos. The plastic crate system is changing that, and with increased funding, we expect even greater efficiency across the value chain,” he added.

Plastic crates are durable, stackable containers that protect tomatoes during transit and reduce spoilage caused by bruising and exposure to pests. By introducing these crates, farmers can deliver higher-quality produce to markets, fetch better prices, and increase their profits.

₦500 Million Intervention Fund

The HortiNigeria programme has facilitated a ₦500 million intervention fund through NIRSAL to support the production and distribution of plastic crates to tomato farmers in key producing states. This funding aims to scale up adoption, improve storage and transport, and modernise the horticulture value chain.

HortiNigeria collaborates with the Federal Ministry of Agriculture and Food Security and the National Tomato Policy Committee as part of wider efforts to modernise Nigeria’s horticulture sector, strengthen food security, and promote sustainable agricultural practices.

HortiNigeria, funded by the Embassy of the Netherlands, is implemented by a consortium led by IFDC in partnership with East-West Seed Knowledge Transfer Foundation (EWS-KT), KIT Institute, and Wageningen University & Research (WUR).

The programme combines technical expertise, farmer training, and access to finance to enhance Nigeria’s tomato industry, a key contributor to the country’s vegetable production and food supply chain.