Farmers, Agribusinesses to Benefit as NADF Moves to Reduce Loan Costs, Partners Sahel Capital
- Sahel Capital Managing Partner Mezuo Nwuneli praised NADF's work on ginger production, farm inputs, and irrigation during a formal partnership signing
- The two organisations signed a Memorandum of Understanding aimed at expanding financing access for agribusinesses across Nigeria
- Sahel Capital revealed that many small and medium agribusinesses currently borrow at interest rates of between 24 and 27 per cent
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Abuja, FCT - Sahel Capital has formally partnered with the National Agricultural Development Fund (NADF) in a move aimed at reducing borrowing costs for Nigeria's agribusinesses and building a broader investment ecosystem in the country's agricultural sector.
The partnership was sealed through the signing of a Memorandum of Understanding between NADF and Sahel Capital Fund Manager Limited in Abuja. Speaking at the event, Sahel Capital Managing Partner Mezuo Nwuneli said his firm was drawn to NADF specifically because of its targeted approach to solving real problems in the agricultural ecosystem, including work on ginger production, the supply of farm inputs to smallholders, and irrigation development.
Source: UGC
"What we saw with NADF is that it has been very focused on figuring out how to solve critical problems in the ecosystem," Nwuneli said.
Why Loan Costs Are Central to the Deal
Nwuneli said the partnership would pursue two main goals: lowering the cost of credit available to agribusinesses and jointly identifying gaps across agricultural value chains that require intervention.
He noted that many small and medium-sized agribusinesses currently access loans at rates between 24 and 27 per cent, a burden that limits their ability to grow. Under the arrangement, NADF will provide capital alongside Sahel Capital to bring down what he called the "blended cost of financing" for eligible businesses.
"Lower cost of financing means you can do more, you're more economically viable, and there's more of your cash flow going to growth versus financing," he said.
Nwuneli added that Sahel Capital has made 45 investments across eight African countries over the past 15 years, backing agribusinesses with annual revenues ranging from N500 million to N20 billion through growth equity and private credit.
NADF Calls It a Shift in Approach
NADF Executive Secretary Muhammed Ibrahim described the agreement as a deliberate move away from conventional lending towards building an investment environment that can attract larger pools of capital into agriculture.
He acknowledged that the sector is widely seen as high-risk but argued that appropriate financing structures could unlock significant opportunities for investors.
"The agricultural sector is often viewed through the lens of risk, but beyond those risks lie enormous opportunities. What we are doing with Sahel Capital is a deliberate shift from simply financing agriculture to building an investment ecosystem where capital can flow sustainably into the sector, attract more investors and support the growth of agribusinesses," Ibrahim said.
He said NADF would contribute its development mandate and understanding of national agricultural priorities, while Sahel Capital would bring market knowledge and investment expertise across multiple value chains.
The MOU also covers potential cooperation on identifying bankable agribusiness projects, technical assistance, capacity building, and information sharing between the two institutions.
FG Partners BoA to Launch Agric Programme in 20 Tertiary Institutions
In another report, the minister of education, Tunji Alausa, announced a federal partnership with the Bank of Agriculture to launch a new programme that will turn idle farmland on university campuses into working commercial farms.
Legit.ng reports that Alausa shared details of the initiative on his official X (formerly known as Twitter) account on Wednesday, November 4, 2026, describing it as part of a broader government plan to equip five million Nigerians with practical skills by 2030.
Source: Legit.ng
