For decades, agriculture in Nigeria operated in a paradox.
It contributed significantly to the economy, employed millions of people and remained central to food security, yet a substantial proportion of the sector—particularly smallholder farmers—remained underserved by formal financial institutions, with limited access to credit, insurance and other appropriate financial services.
Smallholder farmers were considered too risky to finance, with most lacking collateral, reliable data or structured records.
It is estimated that only around 6% of African smallholder farmers or rural households access formal credit, although the proportion varies significantly by country and data source.
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That problem is now forcing a rethink inside parts of Nigeria’s banking industry.
Increasingly, banks are moving beyond traditional lending and into something closer to ecosystem development — combining finance, technology, climate intelligence and startup incubation to solve structural problems in agriculture.
One example is the evolution of the agritech programme developed by First
This post was originally published on this site.
