Oluchi Chibuzor narrates how Sterling Financial institution driving famers’ entry to finance via digital options, customised financing, and strategic partnerships that empower them, increase yields, and strengthen meals techniques.
What if the important thing to Nigeria’s meals safety wasn’t extra farmland – however smarter financing?
Regardless of boasting over 84 million hectares of arable land, many Nigerian farmers stay lower off from the monetary instruments they should develop. In 2022, solely 7 per cent of farming communities secured financial institution credit score (NBS, 2022), leaving tens of millions unable to scale operations. Nevertheless, Sterling Financial institution is altering that narrative via digital options, customised financing, and strategic partnerships that empower farmers, increase yields, and strengthen meals techniques.
In response to the Meals and Agriculture Group (FAO), agriculture contributes considerably to Nigeria’s gross home merchandise (GDP), using round 35 per cent of the workforce. The sector spans 4 key sub-sectors: crop manufacturing, livestock, forestry, and fishing.
Challenges within the Agricultural Sector
The agricultural trade faces deep-rooted challenges – low productiveness, insufficient infrastructure, climate-related shocks, post-harvest losses, and most critically, restricted entry to finance. These elements have lengthy discouraged business banks from participating the sector.
Nevertheless, in Lagos and Ogun States, the story is shifting. In 2022, 26% and 14% of farmers, respectively, accessed micro-credits (NBS) and nationally, the worth of credit score to non-public agriculture jumped from N853 billion in Q1 2020 to over N4 trillion by This fall 2021 1(NBS, 2022), illustrating what’s attainable when financing is prioritised.
Unlocking Progress Via Monetary Innovation
Sterling Financial institution has emerged as a transformative power in Nigeria’s agriculture sector. Via its HEART technique – an funding deal with Well being, Schooling, Agriculture, Renewable Power, and Transportation- the financial institution developed the Agriculture Finance Worth Chain Mannequin (AgFin). This framework has channelled billions of Naira in financing to smallholder farmers, processors, and aggregators, enabling them to scale operations sustainably (Sterling Monetary Holdings Firm Annual Report, 2023).
“We’re investing in whole worth chains, not simply funding farms however supporting processors, aggregators, and market entry,” mentioned Abubakar Suleiman, Managing Director and CEO of Sterling Financial institution. The financial institution’s method is each monetary and digital. Via collaborations with agritech startups, it delivers climate analytics, distant diagnostics, and market intelligence on to farmers. Instruments like SABEX, its commodity-trading platform, hyperlink farmers to consumers and remove middlemen, whereas initiatives like SWAY-AgFin improve financing entry for girls and youth. channelled billions of Naira in financing to smallholder farmers, processors, and aggregators, enabling them to scale operations sustainably (Sterling Monetary Holdings Firm Annual Report, 2023).
“We’re investing in whole worth chains, not simply funding farms however supporting processors, aggregators, and market entry,” mentioned Managing Director and CEO of Sterling Financial institution, Abubakar Suleiman.
The financial institution’s method is each monetary and digital. Via collaborations with agritech startups, it delivers climate analytics, distant diagnostics, and market intelligence on to farmers. Instruments like SABEX, its commodity-trading platform, hyperlink farmers to consumers and remove middlemen, whereas initiatives like SWAY-AgFin improve financing entry for girls and youth.
Managing Director Sterling Financial institution Restricted, Abubakar Suleiman Agriculture Summit Africa (ASA) and Past Sterling Financial institution convenes main voices and changemakers at its flagship annual platform, Agriculture Summit Africa (ASA), a policy-driven discussion board advancing innovation, inclusive market entry, and strategic collaboration throughout the agricultural worth chain. Over time, ASA has drawn the assist and participation of revered companions together with the Mastercard Basis, Benue State Authorities, Leadway Assurance, and the Worldwide Finance Company (IFC), amongst others. These alliances have enriched the summit’s outcomes, powering farmer advisory programmes, nationwide radio initiatives, and evidence-backed coverage dialogues designed to show perception into motion.Thus far, the financial institution has:
· Financed over a million farmers
· Disbursed greater than N500 billion in agri-loans
· Skilled 22,000+ farmers in trendy farming strategies.
Actual-World Impression: The Palm Valley Story
One of many standout success tales of Sterling Financial institution’s agricultural financing journey is Palm Valley Nigeria Restricted, a valued companion since 2019. In 2021, the corporate secured N276 million to finance rice and maize manufacturing for 1,500 farmers. By 2022, this assist grew to N250 million, benefiting 1,700 farmers and cultivating over 1,313 hectares. In 2023, the funding elevated to N461 million, increasing the mission even additional. By 2024, Sterling Financial institution offered N819 million to fund the cultivation of hybrid vitamin A maize, involving round 2,000 farmers. This rising partnership with Palm Valley isn’t just a testomony to the financial institution’s success however has additionally attracted extra companions into its agricultural financing ecosystem.
Strategic Partnerships and the Street Forward
Group Head of Agric Finance and Stable Minerals at Sterling Financial institution, Dr. Olushola Obikanye, highlighted the worth of structured commodity finance, the place farmers use their harvest as collateral, a mannequin that improves liquidity and reduces danger.
Sterling Financial institution’s inclusion within the Nigerian Meals Methods Transformation Alliance underscores its position in shaping the nation’s agricultural future. This multistakeholder platform, made up of FMCGS, monetary establishments, and authorities companies, seeks to construct a resilient and inclusive meals system by 2030. Trying forward, the financial institution is dedicated to increasing entry to:
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· Poultry finance
· Fertilizer finance
· Tools and asset loans.
Via SABEX, it continues to bridge the hole between provide and demand, guaranteeing farmers get honest pricing and well timed funds.
The place Technique Delivers Outcomes
Nigeria’s agriculture sector stands at an inflection level. With good financing, inclusive platforms, and tech-driven options, Sterling Financial institution is proving that meals safety is not only a coverage purpose, it is an achievable actuality. To study extra or be part of the AgFin initiative, go to sterling.ng/agriculture
Sterling Financial institution is a number one Nigerian business financial institution and certainly one of Africa’s most progressive monetary establishments, widely known for its daring method to buyer advocacy and moral banking. From eliminating native switch charges via its OneBank platform to championing inclusive entry to capital, the financial institution has constantly led with influence. Famend for its HEART of Sterling technique, which focuses main investments into the Healthcare, Schooling, Agriculture, Renewable Power, and Transportation sectors of the Nigerian financial system, Sterling continues to construct monetary options that transcend banking to allow dignity, mobility, and alternative for tens of millions of Nigerians. Discover Sterling Financial institution choices at sterling.ng.
