The Nigeria Sovereign Investment Authority (NSIA) through its Nigeria Infrastructure Fund has earmarked $10 million (N1.6 billion) to Agricultural Financing in Nigeria (FAFIN) as one of the three collaborating sponsors, alongside the Federal Ministry of Agriculture and Rural Development and KfW, the German government-owned development bank.
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 catalysing 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.
A statement from NSIA, the managers of Nigeria’s Sovereign Wealth Fund (SWF), explained 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 etc.
Through this strategic act, the NSIA hopes to support the realisation of the Nigeria’s Agriculture Transformation Agenda and facilitate the country’s food security.
Chief Executive Officer of NSIA, Mr. Uche Orji, said “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.”
Sahel Capital, an indigenous agriculture-focused investment and advisory firm, was selected by the Fund Sponsors to be the Fund Manager for FAFIN. [Thisday]