What We Do
Paving the Way for a Flourishing Agri-future
- Comprehensive Agricultural Financial Support
The National Agricultural Development Fund (NADF) strategically directs funds to invigorate all facets of agriculture in Nigeria, from crops to aquaculture. Our financial programs are designed to support farmers and corporate bodies, boosting food security and reinforcing every aspect of the agricultural ecosystem in line with our vision for sustainable growth.
- Policy Development and Institutional Empowerment
With a focus on policy and institutional empowerment, the NADF finances the execution of agricultural policies and reinforces institutions. We help nurture state-specific agricultural offices committed to enhancing the food production system across the Federation, embodying our mission to leverage agricultural transformation for socio-economic development.
- Research and Capacity Building Initiatives
Our commitment to progress in the agricultural sector is reinforced through financial support for research and capacity building. The NADF provides crucial grants for research, training, and the development of market information systems, ensuring knowledge is expanded and shared in accordance with our goal to be the catalyst for agricultural prosperity.
How we Fund
Mobilizing Resources for Growth
- Investment Objective
Dual Focus: Financial & Non-Financial Outcomes
NADF goes beyond just financial returns. We strive for a dual impact, prioritizing both financial sustainability and positive social and environmental outcomes. This includes supporting community development, fostering sustainable farming practices, and protecting the environment.
- Funding Approach
NADF leverages a diversified strategy to secure funding. We establish specialized sub-funds with targeted focus areas, attracting capital to support a thriving and diversified agricultural sector.
We strategically allocate capital within these sub-funds, utilizing a unique blend of Debt/Equity/Grant. This ensures a balance between:
- Debt Financing for stable financial returns and long-term sustainability.
- Equity Investments to support the growth and profitability of promising agricultural ventures.
- Grants to stimulate innovation and provide targeted support across the agricultural sector.
- Mode of Intervention
NADF adopts a flexible approach to maximize impact. We invest in:
- Brownfield Projects: Revitalizing existing agricultural assets and infrastructure for renewed productivity and efficiency.
- Dark Greenfield Projects: Supporting the creation of entirely new, innovative projects that represent unexplored opportunities for growth.
To ensure widespread access to financing, we primarily utilize an on-lending model. This channels funding through established financial institutions, allowing them to provide loans to farmers and agribusinesses. We also engage in direct investments to drive growth in strategic agricultural segments.
WHAT WE FUND
Directing Investments for Impact
- Strategic Choices for Maximum Impact
Priority Investment Targets
Smallholder Farmers and Women: They form the backbone of Nigeria's agricultural sector, with 39% of the working population (223 million) employed in agriculture. Of these, women comprise 25% and youth 36%, highlighting the significant role these groups play. NADF prioritizes support for smallholder farmers and women, recognizing their potential to significantly contribute to agricultural productivity and socio-economic development. By empowering them with resources and knowledge, NADF aims to improve livelihoods and reduce poverty, especially for the 50% of Nigerians living below the international poverty line.
Priority Commodities
Boosting Staple Crops for Food Security and Economic Growth: NADF focuses on cassava, maize, rice, and cowpeas, strategically targeting crops that align with Nigeria's National Development Plan. These crops are:
- Casava: Nigeria is the world's largest producer, and cassava offers food security due to its year-round availability and high caloric value. Grown by 14 million households, cassava has the potential to reduce reliance on wheat imports for flour, but current yields (6 mt/ha) lag behind the global average (10 mt/ha).
- Maize: The second-largest maize producer in Africa, Nigeria cultivates maize in 15 million households. Maize is a key dietary component for both humans (56% of production) and livestock (31%), providing essential nutrients like Vitamin B complex. However, similar to cassava, maize yields (2.2 mt/ha) are below the global average (5.7 mt/ha), presenting an opportunity for improvement.
- Cowpeas: The world's largest cowpea producer, Nigeria recognizes the importance of this protein-rich and affordable crop for food security. Grown by 6 million households, cowpeas also improve soil fertility through nitrogen fixation. However, only 40% of cowpea farmers utilize improved seeds that can significantly boost yields by 26%.
- Rice: Nigeria is Africa's largest rice producer, but with a self-sufficiency rate of only 64%, the country relies on imports to meet demand. Grown by 4 million households, rice yields (1.9 mt/ha) are far lower than the global average (4.7 mt/ha). Unpredictable weather patterns further challenge rice production, discouraging investment in agricultural inputs.
Geo-Focus
NADF prioritizes projects that strengthen domestic food security, against projects involving exports. Our goal is to ensure Nigeria's population has reliable access to affordable and nutritious food.
- Fundamental Areas of Focus
Agricultural Inputs
Access to Essentials for Improved Yields: NADF facilitates access to high-yielding, disease-resistant seeds, fertilizers, and pesticides. This equips farmers with the tools they need to improve crop yields and farm outputs. For instance,
- New disease-resistant cowpea varieties can reduce pesticide use and boost yields by 20%.
- Increased adoption of hybrid maize seeds (from 10% to 50-100%) has the potential to double yields from 2 t/ha to over 4 t/ha.
- Seed input financing can not only enhance production but also reduce reliance on fertilizers and pesticides, promoting more sustainable farming practices.
Implements and Mechanization
Modernizing Agriculture to Increase Efficiency: We support the procurement of modern farm machinery, such as tractors, to enhance farm efficiency and increase the proportion of produce that undergoes processing. Studies show that:
- Increasing the mechanization rate from 0.3 horsepower per hectare (hp/ha) to 0.8 hp/ha could double rice production to 7.2 million tonnes.
- Mechanical harvesting can reduce harvest costs by 43% and total production costs by 12%.
However, the high cost of equipment (e.g., new tractor costing 20 million naira) limits the ability to significantly improve mechanization adoption amongst smallholder farmers.
Infrastructure
Building Resilience and Reducing Post-Harvest Losses: NADF invests in critical infrastructure projects to support long-term farm productivity and reduce post-harvest losses. Key focus areas include:
- Water Management:
- Expanding irrigation could generate over $600 million in increased income for farmers during dry seasons.
- Irrigation enables year-round farming and reduces reliance on seasonal rainfall, expanding cultivable land.
- Unlocking dry season farming significantly improves food security potential.
- There's an opportunity to drive large-scale adoption of affordable small-scale water management solutions (e.g., drip irrigation).
- Storage:
- 45% of post-harvest output spoils due to the lack of cold storage, leading to a 25% loss of income for smallholder farmers.
- Only 1.8 million metric tonnes of warehouse capacity exist for around 30 million metric tonnes of grains and oilseeds produced annually.
- Investing in storage infrastructure and technologies not only reduces post-harvest losses but also enables an increase in the share of processing, adding value to crops.
Emergency Support
Safeguarding Livelihoods in Times of Crisis: NADF has established a rapid response mechanism to address unforeseen challenges caused by natural disasters or disease outbreaks. This financial support ensures the continuity and recovery of agricultural activities.
FAQs
Do You Have Questions About NADF? Explore Our Frequently Asked Topics
- 01What's NADF all about?
NADF is here to empower Nigerian agriculture! We focus on boosting production, helping small farmers thrive, ensuring food security for everyone, encouraging sustainable practices, and backing research for a better agricultural future.
- 02How can NADF help me financially?
Yes, NADF can provide finance through financial institutions, including microfinance banks, cooperative societies, organizations, farmer groups, and institutions to individual farmers as well as corporate bodies, on appropriate soft terms. Those interested should look out for information on our website and social media handles on available programmes and application process.
- 03Does NADF only support crops?
Not at all! We support crop production, livestock farming, fisheries, and even agro-processing. Our goal is to see the entire agricultural sector flourish and ensure a stable food supply for all.
- 04Where does NADF's money come from?
NADF is funded through a mix of sources. The government allocates funds, generous donors contribute, loan repayments come back in, and even the agricultural activities we support generate revenue that gets reinvested.