NADF, NIRSAL Deepen Partnership on Mechanisation Financing for Nigerian Farmers

News in Brief:

-NADF and NIRSAL Plc are strengthening their collaboration to expand agricultural mechanisation financing and improve food production across Nigeria. -The partnership is focused on affordable tractor financing, irrigation farming, and training certified tractor operators to support farmers nationwide.

The National Agricultural Development Fund (NADF) and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) are strengthening collaboration on agricultural mechanisation and financing as part of efforts to improve food production and support farmers across Nigeria.

The renewed partnership was discussed during a meeting held in Abuja, where both organisations explored ways to expand access to tractors, affordable financing, irrigation systems, and technology-driven monitoring solutions for farmers and agribusinesses.

Institutions Seek Stronger Collaboration for Food Security

Speaking during the meeting, Mohammed A. Ibrahim, NADF Executive Secretary and Chief Executive Officer, stated that stronger partnerships among agricultural institutions had become necessary given the sector's current realities.

According to him, collaboration would help maximise limited resources while delivering sustainable impact across Nigeria’s agricultural value chain. He noted that improving productivity and strengthening food systems require coordinated support from both financial and development institutions.

On his part, Ewaen Imohe, said affordable financing remains critical to expanding mechanisation and boosting productivity among Nigerian farmers.

Tractor Financing, Operator Training in Focus

NIRSAL disclosed that discussions with NADF are focused on creating a structured vendor financing framework with an all-in interest rate of 17.5 per cent. The arrangement is expected to support farmers and agribusiness operators seeking access to mechanised equipment such as tractors.

The proposed collaboration will also include NADF’s tractor operator training programme, which aims to develop a steady pool of certified tractor operators nationwide.

Both organisations agreed to continue technical engagements on workable partnership models that can improve food security and increase agricultural output across the country.

Established through the National Agricultural Development Fund Act 2022, NADF was created by the Federal Government to address financing gaps in agriculture and support food security. NIRSAL Plc, established in 2013, focuses on de-risking agricultural lending and attracting commercial financing into Nigeria’s agribusiness sector.