FG Pushes Blended Finance Model to Unlock Agricultural Investment Growth

(Mr. Muhammed Abu Ibrahim. Photo by Sun Nigeria)

The Federal Government has acknowledged that transforming Nigeria’s agricultural sector will require far more capital than public funds alone can provide, calling for greater private sector participation through a blended finance framework designed to manage the risks associated with agribusiness investment.

Speaking to a news agency on Tuesday, National Agricultural Development Fund Executive Secretary Mohammed Ibrahim said agriculture remains central to Nigeria’s food security, job creation, industrial development and export growth, but that public capital alone cannot drive the scale of transformation required.

“Relying solely on public capital will not suffice to finance the transformation of Nigeria’s agricultural sector.

Similarly, private capital will not be mobilised at the necessary scale unless the associated risks are comprehensively understood, appropriately allocated, and effectively managed,” he said.

Ibrahim noted that stakeholder engagements in 2025 revealed that while substantial pools of capital exist within the financial system including development finance and concessional funding actual investment in agribusiness remains constrained by challenges around risk assessment, investment structuring and alignment with agricultural value chains.

He said the government’s long-term goal is to build a structured marketplace where capital providers, agribusiness operators, technical experts and risk-sharing institutions can collaborate more effectively to unlock investment at the scale needed.