The National Agricultural Development Fund (NADF) has initiated a stakeholder validation process for a proposed Non-Interest Finance Framework and Guidelines aimed at expanding credit access and strengthening Nigeria’s food security.
Speaking at a strategic validation roundtable in Abuja, Mohammed Ibrahim, NADF Executive Secretary and CEO, explained that the initiative is designed to offer asset-backed, ethical, and risk-sharing models that complement conventional banking.
“Our objective is not simply to introduce another financing framework. It is to broaden the financing ecosystem for agriculture by ensuring that every credible financing option is available to Nigerian farmers, agribusinesses, and other value chain actors,” Ibrahim stated.
The proposed policy will establish transparent operating procedures, governance standards, and Shari’ah compliance mechanisms for interventions delivered through licensed Non-Interest Financial Institutions. Ibrahim noted that the draft is undergoing critical review to capture industry gaps and practical insights before final adoption.
Dr. Paul Oluikpe, Director of the Development Finance Advisory Department at the Central Bank of Nigeria (CBN), praised the initiative for addressing persistent funding deficits across agricultural production, infrastructure, and mechanisation. He noted that as the CBN shifts away from direct developmental interventions, institutions like the NADF are increasingly vital for bridging financing gaps.
Echoing this view, Professor Bashir Aliyu Umar, Deputy Chairman of the CBN’s Financial Regulation Advisory Council of Experts (FRACE), emphasised that integrating non-interest models drives financial inclusion by ensuring no segment of the agricultural sector is left behind.
Providing an operational overview, Olalekan Alabi, NADF Head of Investment, explained that the framework sets clear structures for deploying, monitoring, and reporting agricultural investments. He stressed that the validation session is meant to rigorously test the technical robustness and real-world applicability of the guidelines before they are finalised.
