Top 5 Loan Opportunities for Rice Farmers in Nigeria.

Data from the United States Department of Agriculture shows that Nigeria is the leading producer of rice in Africa with an average production volume of 4.89 million metric tonnes in 2020. Nigeria also leads as Africa's largest consumer of rice with an annual consumption of 6.7 million metric tonnes. Local production accounts for just 57% of this figure, leaving a supply deficit of close to 3 million metric tonnes.

The lack of finance to fund the type of infrastructural development necessary for mechanised farming is one of the major problems holding back agro-based enterprises in Nigeria, and rice production is no different.

Several programmes have been initiated to provide access to funding in order to boost rice production in Nigeria to meet the ever increasing local demand. This post explains some of such loan opportunities and points out how rice farmers and other stakeholders can benefit from them.

Here are 5 Loan Opportunities Available to Rice Farmers in Nigeria

Anchor Borrower Program: The CBN established this to create an economic linkage between small scale farmers and reputable companies involved in production and processing of key agricultural products such as rice. The aim is to provide loans to farmers to boost production, create jobs, reduce food importation there by conserving foreign reserves. Nairametrics gives a detailed breakdown on how to apply for this.

BOI Rice and Cassava Intervention Funds: This fund from the Bank of industry will be accessed by Limited Liability Companies, and Enterprises engaged in adding value to the rice/cassava commodities through the setting up of milling facilities. With the aim to create jobs, boost agriculture and achieve foreign exchange savings for Nigeria. Learn more here.

The Bank of Agriculture: this is a government-backed bank that provides soft loan opportunities to businesses in agricultural production. The bank of industry provides credit, knowledge and capacity building, non-agricultural microcredit etc to farmers in Nigeria. Rice farmers in Nigeria can leverage this opportunity to expand their businesses no matter what level they operate in the value chain. Learn more here.

International Funds for Agricultural Development (IFAD) Loans: This loan is geared towards improving agricultural development and livelihoods in rural areas. IFAD loans have helped reduce rural poverty since 1985 by providing grant and funding opportunities for agribusiness in the Cassava and Rice value chains. 35% of the marching grants are earmarked for women agri-business owners. Get more details here.

Agricultural Credit Support System (ACSS): This initiative by the Federal government and the central bank prescribed N50 billion to help farmers exploit the untapped potential of Nigeria's agric sector. Click here for more information about this.

How Meadow Foods is Creating an Equitable Credit System for Nigerian Farmers

Although some of these funds are readily available to farmers, many of them, especially those in the rural areas, barely know about them or know how to go about it. Various organisations also find it difficult to know the most qualified farmers to offer these loan facilities to.

We at Meadow Foods collect data on the farmer, soil type, geography, weather, external factors affecting farm yield, crop type, etc. We crunch these data to help lending institutions, governments and agriTechs to give sustainable loans to farmers which in turn help the farmers expand their businesses and continue feeding the nation.

We also help farmers monitor, mitigate and transfer risks through advisory and insurance, to help them improve output and repay their loans.

Please contact adaku.omidosu@meadow-foods.com to learn more.