Nigeria's Agriculture Bank Targets $3b Ginger Exports by 2028

News in brief:

-Nigeria plans to expand its ginger industry from a $300 million sector to a $3 billion export market by 2028 through advanced tissue culture technology.

-The agriculture bank also unveiled new food price stabilisation, mechanisation and digital financing initiatives aimed at improving farmer income and boosting food security.

The Bank of Agriculture (BoA) has unveiled a series of initiatives aimed at stabilising Nigeria’s agricultural market, protecting smallholder farmers from price volatility and expanding the country’s ginger export industry to $3 billion by 2028.

The ginger revival programme is welcome news for producers, especially following the devastating fungal infection that affected the domestic industry in 2023.

Managing Director of the financial institution, Mr Ayo Sotinrin, explained that the programme would replace traditional replanting methods with tissue culture technology aimed at improving yield quality and disease resistance.

He described the reforms as part of the agricultural agenda of President Bola Tinubu aimed at improving farmer income, expanding financial inclusion and strengthening national food security.

Sotinrin said the interventions reflect the government’s commitment to supporting farmers and ensuring they benefit more from their agricultural activities.

BOA Introduces Guaranteed Minimum Price System

According to the BOA boss, one of the major pillars of the reform package is the introduction of a Guaranteed Minimum Price (GMP) mechanism designed to bridge the gap between production costs and farm-gate prices.

He explained that the programme would operate through a nationwide sensitisation campaign across multiple media platforms.

Sotinrin added that the bank would purchase excess produce directly from farmers whenever market prices fall below approved thresholds to reduce post-harvest losses and stabilise food prices.

The commodities, he noted, would be stored in the country’s 33 silos for future price management and supply regulation.

Also, the bank announced transitioning from direct microcredit disbursement to a digital financing ecosystem driven by farmer aggregation companies.

He said the bank now uses digital platforms and identity verification systems, including Bank Verification Number (BVN) and National Identification Number (NIN), to open bank accounts for farmers within minutes.

According to him, the system is designed to ensure financial support reaches genuine farmers rather than middlemen.

Mechanisation Drive Targets 1.2 Million Farmers

Sotinrin identified mechanisation as another critical focus area, noting that Nigeria currently has a tractor density of just 0.27 per 100 square kilometres.

To address the shortfall, he said the bank has deployed 2,000 high-durability tractors sourced from Belarus to service providers capable of mechanising at least 600 hectares each.

He stated that the initiative is expected to support more than 1.2 million farmers during the current wet season.