Platform for African – European Partnership in Agricultural Research for Development

Monday, March 2, 2015

Fund for Agricultural Financing in Nigeria (FAFIN)

24 February, 2014. Abuja, NIGERIA. The Federal Minister of Agriculture and Rural Development of Nigeria, Dr. Akinwumi Adesina, met with the new Nigeria Agribusiness Group Executive Leadership, a select group of CEOs from Nigeria’s top agribusiness and financing institutions to lead the engagement of the broader agribusiness community through the Nigeria Agribusiness Group (NABG) in Nigeria’s Agricultural Transformation Agenda (ATA).

In partnership with FMARD, the NABG will catalyse sustainable growth of the country’s agricultural sector by continuing to treat agriculture as a business, not as government funded development project. The Fund for Agricultural Financing (FAFIN) and the Nigerian Incentive Based-Risk Sharing for Agricultural Lending (NIRSAL) are to contribute to cheap financing and access to financing issues

16 December 2014. Officially Launch Agriculture of the Nigerian Funding and Youth Empowerment Programme and the Fund for Agricultural Finance in Nigeria (FAFIN) is an innovative agriculture-focused investment fund that provides tailored capital and technical assistance solutions to commercially-viable small and medium-sized enterprises (SMEs) and Intermediaries across the agricultural sector in Nigeria.
  • One of the funders is KfW. KfW Development Bank carries out Germany’s Financial Cooperation with developing and emerging countries on behalf of the German Federal Government.
  • FAFIN has an initial 10 year life extendable for three additional 1 year periods.
  • FAFIN’s target fund size is US $100 million currently with $34 million committed capital from its first close.
  • Average investment size is US$ 3-5 million.
  • Small and medium sized enterprises across the agricultural value chain; and intermediaries for on-lending to agricultural SMEs and small holder farmers.
  • FAFIN has an independently funded technical assistance facility that supports investee companies and mitigates investment risks. The target size of the facility is 10% of the fund and it is currently funded with US$ 2 million.
  • FAFIN has a preference for investment opportunities that enable import substitution, increase food security, or bridge gaps and fix inefficiencies along supply chains.
27 Nagropreneurs that received the initial grant from the presidency through the Federal Ministry of Agriculture (FMARD) and Rural Development under the Youth Employment in Agriculture Programme (YEAP).

One among them is Barrister Nkiru Nnaemego. She is the chief executive officer of Fresh and Young Brains Development Initiative. 
This initiative will invest in the Youth Farm (YFarm) Incubation (One Stop) Centre for African Youth in Agribusiness.

  • This centre will provide online and onsite certificate courses in agribusiness, host a culinary school, agro-processing/packaging plant and an integrated farm for livestock, aqua-culture and crop production. 
  • The project was launched as a national campaign under the “YFarm: My Farm, My Swag Campaign,” during the 1st National Stakeholders Meeting on the YFarm Project by the FMARD, Oxfam, UNWomen, and other stakeholders in 2014. The project enjoys endorsement and support from the African Union Commission, ministries of agriculture and rural development,youth development, UNDP, UNWomen, UN Volunteers, among several others.

Samuel Terhungwa Ayede, a young graduate of Geography from Benue State is ex-banker that dumped the corporate boardroom for the farm. He is the Chief Executive Officer (CEO), Terjimi Farms, located at Masaka, Nasarawa State. The farm, which sits on a seven hectares land, where high yielding, high quality fresh vegetables are produced. For Terhungwa, there is no reason for regrets, as he is a major supplier to many departmental stores like Shoprite, hotels, restaurants and individuals.

Mariam Sanda, 27, a native of Maiduguri in the insurgency ravaged Borno State, is the Managing Director/Chief Executive Officer, Treasure Land Global farms, located in Kuje, Abuja, which employs not
less than nine people.

Adeniyi Adenuga, a graduate of Animal Production and Health, and Masters degree holder in Agricultural
Biochmeistry, owns a 30-tonne Catfish farm in Ijebu-Ode, Ogun State. The farm has, in its employ, 10 permanent staff and five others on temporary placement. Adenuga is angling to bring the farm to a 900-1000-tonne expert-based fish farm within the next five years.

Muniru Umaru, who was once unemployed, now has 70-tonnes of fish farm that employs many people.

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