The United Nations (UN) International Fund for Agricultural Development (IFAD) moved to address food insecurity in Nigeria and other poor countries by launching a financing programme for farmers.
The Private Sector Financing Programme (PSFP) aims to spearhead an increase in much-needed private investment in small and medium-sized enterprises, farmers’ organisations and financial intermediaries.
As part of its launch, the PFSP announced its first loan of $5 million (about N2,058,151,375) to a Nigerian social impact enterprise, Babban Gona, which has a strong background in moving small-scale farmers from subsistence to a more market-orientated model.
The loan will help Babban Gona support 377,000 small-scale rice and maize producers in Nigeria with a comprehensive package of training, quality inputs, and marketing services.
Babban Gona will also store and sell the harvest on behalf of its farmers when prices are higher.
IFAD President Gilbert F. Houngbo explained the need for the programme in a statement to The Nation by APO Group on behalf of IFAD.
Houngbo said: “We can end poverty and hunger! But to achieve this, we urgently need to stimulate more private sector investments to rural areas and unlock the immense entrepreneurial potential of millions of rural SMEs and small producers.
“With access to capital, they can attract more investors and partners, grow their businesses and create employment opportunities – especially for young people and women.”
