Nigeria: FirstBank and stakeholders in Nigeria’s agricultural and financial sectors have called for a shift towards structured, longer-term financing to unlock investment across the country’s agribusiness value chains and strengthen non-oil exports.
The call was made at the opening of the fifth FirstBank Agric & Export Expo in Lagos, which brought together policymakers, financial institutions, farmers, exporters and other players in the agricultural sector.
Lagos State Governor Babajide Sanwo-Olu, represented by the Commissioner for Agriculture and Food Systems, Ruth Olusanya, said conventional short-term lending models often failed to reflect the realities of agricultural businesses.
“A good harvest without financing cannot become a good business, and a good product without access to markets cannot become a successful export,” Sanwo-Olu said.
He urged financial institutions to structure agricultural financing around planting, harvesting and processing cycles, rather than imposing conventional short-term models on businesses whose returns may take longer to materialise.
Sanwo-Olu also called for greater local processing of agricultural commodities, warning that exporting raw products limits the value Nigeria can capture from its agricultural production.
“Cassava should not leave Nigeria only as cassava, and cocoa should not leave our shores only as raw beans,” he said.
FirstBank Group Chief Executive Officer, Olusegun Alebiosu, said the bank was seeking to move beyond conversations about agricultural opportunities towards practical financing, partnerships and market access.
“Our objective is not only to showcase opportunities within agriculture and exports but also to facilitate the connections, partnerships, financing solutions, market access opportunities, and knowledge exchange required to transform ideas into thriving enterprises,” Alebiosu said.
FirstBank Chief Economist, Chinwe Egwim, said agriculture contributes more than 20 per cent of Nigeria’s GDP but accounts for about 4.1 per cent of merchandise export earnings.
She said the disparity presented opportunities for increased investment across the agricultural value chain, particularly in aggregation, storage and processing.
Egwim advised exporters to adopt market-led strategies by developing products around international buyer specifications, certification requirements and reliable supply.
The Consul-General of Brazil in Lagos, Ronaldo Vieira, said the country’s agricultural transformation demonstrated the importance of collaboration among government, research institutions, farmers and private financiers.
Ondo State Governor Lucky Aiyedatiwa said the state’s agricultural potential in cocoa, oil palm, cassava, fisheries, aquaculture and livestock would only translate into broader economic benefits if complete value chains were developed.
“Comparative advantage alone does not create prosperity. Our responsibility as government is to convert the comparative advantage into competitive advantage,” Aiyedatiwa said.
He said his administration was focusing on areas including agricultural inputs, aggregation, processing, storage, logistics, traceability, standards, financing and access to domestic and international markets.
Aiyedatiwa also identified insecurity and access to land as challenges confronting agricultural investment, saying the state was working with security agencies and communities to address the issues.
He further stressed the importance of traceability and compliance with international standards, particularly for cocoa exports.
Niger State Governor Mohammed Umaru Bago called for greater emphasis on domestic food production, warning against excessive dependence on food imports.
Bago said Nigeria had imported food worth more than $3bn during the year and projected that the figure could reach $4bn before the end of the year.
He also called for stronger agricultural research and domestic seed production, arguing that improved productivity would require greater attention to research, inputs and technology.
The governor linked increased agricultural production to efforts to tackle insecurity and urged financial institutions and policymakers to give greater priority to agriculture.
The two-day expo attracted more than 2,000 participants and 100 exhibitors, with discussions focusing on cold-chain logistics, storage capacity and trade linkages under the African Continental Free Trade Area.
The stakeholders maintained that financing agriculture beyond primary production, combined with investment in processing, logistics, standards and market access, would be critical to expanding Nigeria’s agricultural economy and export capacity.
