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By Daniel Adaji
The National Agricultural Development Fund (NADF) has launched a N1.5bn agricultural financing initiative to support 1,500 smallholder farmers in Kaduna State, marking the pilot phase of its flagship National Agricultural Development Programme (NADP-1).
The fund is being disbursed in partnership with NOVA Merchant Bank and Flour Mills of Nigeria (FMN) Agro and will focus on maize cultivation across 1,500 hectares.
The announcement was made during a press conference held Wednesday in Abuja.
Mohammed Ibrahim, Executive Secretary of NADF, said, “Today is a major milestone in the activities of the NADF as we formally launch the National Agricultural Development Programme, NADP-1. The NADP-1 is focused on unlocking finance and market access for smallholder farmers.”
According to him, “This facility has been designed essentially to provide access to finance for our teeming farmer population, to enhance smallholder productivity and profitability and to strengthen agricultural value chains through strategic partnerships such as the one we are having today.”
The initiative aligns with the Federal Government’s Renewed Hope Agenda on food security and economic diversification.
This programme supports national goals; these are food security agenda, rural development, poverty reduction, job creation and economic diversification across the agricultural sector,” Ibrahim added.
Olalekan Alabi, NADF’s Head of Investment, provided further details: “The amount involved is N1.5bn. The target is 1,500 farmers, with plans to scale up to 10,000 before the end of this wet season.”
Dr Sadiq Usman, Managing Director of FMN Agro, explained that maize was chosen due to its strategic importance. “Kaduna produces 20% of Nigeria’s maize and is home to highly productive farmers. It’s a perfect ground for demonstrating how better seeds, nutrition, and agronomy practices can boost yields,” he said.
To give you context, we are the single largest buyers of maize, soybeans, sorghum, and wheat in Nigeria. A factory without a farm is scrap metal, and a farm without a factory is just wheat,” he added.
Usman stressed that the project will prioritise three elements essential for farmer productivity: seed, fertiliser, and extension services.
On NOVA Bank’s role, Esosa Igbineweka, Head of Value Chain Banking, noted, “FMN Agro has to pass through a bank, and as a bank, we have to identify an organisation that can deliver on this mandate.” He said FMN Agro was selected based on its strong track record and capacity to manage smallholder engagement.
Uzoma Ayonmike, Group Head of Corporate Banking at NOVA, said, “Agriculture is a cornerstone of national growth. We are proud to be the first financial institution to disburse under the NADF pilot phase.”
She added, “This partnership is not just a transaction. It is a step toward food security, economic inclusion, and sustainable national progress.”
Ibrahim called on others to join the effort, stating, “I would like to invite other financial institutions and agribusinesses, development partners, to come and participate, and let’s scale for impact.”
The NADP-1 model includes provisions for mechanisation, input access, and market linkages, offering a holistic approach to tackling productivity gaps in the sector.