The Value Chain Development Programme (VCDP), a joint initiative of the Federal Government and the International Fund for Agricultural Development (IFAD), has urged banks and insurance firms to offer more accommodating loan and insurance options for farmers in Niger State as the planting season approaches.
During a meeting with representatives of financial institutions, insurance companies, and Commodity Alliance Financing (CAF) executives in Minna, the State Programme Coordinator, Hajiya Hadizat Isah, emphasized the need for revised financial products. She explained that the gathering aimed to find ways to simplify access to credit and insurance for rice and cassava growers involved in the program.
Isah highlighted that IFAD-VCDP has set up CAF structures in nine local government areas to provide continuous guidance to farmers as the program nears its conclusion in Nigeria. She pointed out that some farmers have voiced concerns over rigid loan terms and called on financial organizations to adjust policies that create repayment challenges.
She also encouraged CAF leaders to educate farmers about emerging insurance offerings, particularly those that protect crops and goods during transport. Additionally, she stressed the importance of farmers staying informed about new financial products, including equipment financing schemes.
The CAF State Chairman, Engr. Mohammed Ibrahim Kanko, appealed to lenders to loosen their requirements so that farmers can more readily obtain loans and insurance amid escalating agricultural costs. He noted that many farmers experience tremendous stress after taking loans due to harsh repayment terms and rising production expenses.
Local CAF chairmen from Katcha and Wushishi, Mohammed Musa Kambari and Ahmed Abdullahi Wasagi, promised to update farmers in their regions about the meeting’s outcomes and the new packages offered by institutions. They decried the increasing cost of farming inputs and equipment, observing that many producers now rely on credit to sustain their operations as the rainy season draws near.
Representatives from financial and insurance organizations assured continued support for farmers even after IFAD-VCDP withdraws from Nigeria. Sunday Nenmene, a representative of the Development Exchange Centre (DEC), stated that the organization will persist in working with farmers enrolled in the program. “We have their details in our database and will maintain our relationship with them after VCDP exits, as their activities have expanded our reach and operations,” he said.