The Federal Government has acknowledged that it lacks the financial capacity to single-handedly transform Nigeria’s agricultural sector, stressing that stronger private sector participation is essential to achieving food security, job creation and sustainable economic growth.
The government said unlocking the full potential of agriculture will require a blended finance approach that combines public and private capital while reducing the risks that often discourage investment in agribusiness.
Speaking with the News Agency of Nigeria (NAN), the Executive Secretary of the National Agricultural Development Fund (NADF), Mohammed A. Ibrahim, described agriculture as a critical pillar of Nigeria’s food security, industrial development, export growth and national prosperity.
According to him, the scale of investment required to modernise and expand the sector goes beyond what government resources alone can provide.
“Agriculture is fundamental to Nigeria’s food security, job creation, industrial development, export capabilities and overall prosperity. Relying solely on public capital will not be sufficient to finance the transformation of the sector,” Ibrahim said.
He explained that while significant funding exists within the financial system, including development finance and concessional funds, actual investment in agribusiness remains below expectations due to challenges surrounding risk assessment, investment structuring and alignment with agricultural value chains.
Ibrahim noted that consultations with stakeholders in 2025 revealed that investors remain cautious about committing large-scale capital to agriculture without stronger mechanisms for risk management and investment protection.
To address this challenge, he said the government is working towards creating a structured ecosystem that brings together capital providers, agribusiness operators, technical experts and risk-sharing institutions.
The initiative, he explained, is aimed at improving collaboration, attracting greater private investment and accelerating growth across the agricultural value chain.
The NADF boss maintained that a stronger partnership between government and the private sector is crucial to unlocking the capital needed to boost food production, strengthen agribusinesses, create jobs and drive long-term agricultural transformation in Nigeria.
