THE country’s agricultural sector development got a boost Monday, with the announcement by the Nigeria Sovereign Investment Authority (NSIA) through its Nigeria Infrastructure Fund to commit about $10 million to the Fund for Agricultural Financing in Nigeria (FAFIN or The Fund) to aid its growth.
However, NSIA said it would be doing this in partnership with the Nigerian Federal Ministry of Agriculture and Rural Development (“FMARD”) and KfW, the German government-owned development bank.
NSIA in a statement said the Fund is an innovative initiative, designed to transform the agriculture finance landscape in Nigeria.
“With a $100 million target, FAFIN will provide tailored equity and debt capital and technical support solutions to commercially-viable small and medium-sized enterprises (SMEs) and intermediaries across Nigeria’s agricultural value chain.
“The Fund will be dedicated to catalyzing an agriculture-led inclusive economic growth in Nigeria through enhanced agricultural productivity, value-added processing and market linkages. The $100 million target will be reached through further contributions from private sector investors”, it stated.
NSIA noted that its participation in this initiative is a firm demonstration of its agriculture strategy as one core area of focus alongside power, housing, healthcare, motorways among others. Stressing that through this strategic act, it hoped to support the realization of the Federal Government’s agriculture transformation agenda and facilitate Nigeria’s food security.
Chief Executive Officer of NSIA, Uche Orji commented “Agriculture is a sector of strategic importance to the NSIA and an area we see opportunities for significant growth and profit through the facilitation of the enhancement of Nigeria’s critical agriculture infrastructure.”
The statement informed that Sahel Capital, an indigenous agriculture-focused investment and advisory firm, was selected by the Fund Sponsors to be the Fund Manager for FAFIN.