FAQ

The National Agricultural Development Fund (NADF) is a Federal Government agency established to accelerate agricultural development in Nigeria by mobilising and deploying finance and other strategic interventions across the agricultural value chain. Through its investment programmes, NADF seeks to improve food security, increase agricultural productivity, promote value addition, and attract private investment into the sector.

NADF supports the transformation of Nigeria’s agricultural sector through:

• Financing agricultural projects and businesses;
• Supporting access to quality agricultural inputs;
• Promoting mechanisation and agricultural infrastructure;
• Supporting research, innovation and extension services;
• Encouraging private sector investment through blended finance and strategic partnerships.

Generally, No.

NADF’s primary financing model is onlending, where funds are provided to approved Participating Financial Institutions (PFIs), such as commercial banks, development finance institutions, microfinance banks and other eligible financial intermediaries. These institutions then lend to eligible farmers and agribusinesses.

In limited strategic circumstances, NADF may provide direct financing to qualifying large-scale agricultural enterprises or strategic projects in accordance with its approved Debt Sub-Fund Framework.

e support crop production, livestock farming, fisheries, and even agro-processing. Our goal is to see the entire agricultural sector flourish and ensure a stable food supply for all.

The NADF Onlending Programme is the Fund’s financing programme through which concessionary funds are channelled to approved financial institutions for onward lending to eligible agricultural enterprises.

The programme is designed to:

• Expand access to affordable agricultural finance;
• Reduce the cost of borrowing;
• Promote food security;
• Encourage private sector participation in agriculture.

Partnering with regulated financial institutions allows NADF to:

• Reach more farmers and agribusinesses nationwide
• Leverage existing credit appraisal and loan management systems
• Promote responsible lending and portfolio management
• Mobilise additional private sector capital into agriculture through blended finance structures.

This approach improves sustainability while expanding access to finance.

Eligible beneficiaries include:

• Smallholder farmers
• Farmer cooperatives
• Micro, small, medium and large agribusinesses
• Agricultural processors
• Input suppliers
• Storage and logistics businesses
• Mechanisation service providers
• Other eligible agricultural value chain participants.

Applicants must satisfy the credit requirements of the participating financial institution.

The programme supports eligible activities across the agricultural value chain, including:

• Crop production
• Livestock and aquaculture
• Agro-processing
• Storage and warehousing
• Farm input supply
• Agricultural mechanisation
• Cold chain and logistics infrastructure

ONL1 provides financing through Deposit Money Banks, Development Finance Institutions and other larger financial institutions, primarily serving commercial agricultural enterprises across the value chain.

ONL2 focuses on financial inclusion by working through Microfinance Banks and cooperatives to reach smallholders, micro-enterprises and underserved communities.

Both windows offer Fully Funded and Blended Finance options depending on the transaction structure.

Under Fully Funded facilities, NADF provides the funding while the participating financial institution bears 100% credit risk of lending to the borrower.

Under Blended Finance, NADF combines its funds with financing from participating financial institutions and/or other investors through structured financing arrangements designed to reduce borrowing costs while mobilising additional private capital.

Interested farmers or agribusinesses should apply through an approved Participating Financial Institution (PFI).

The PFI conducts its normal credit appraisal and due diligence. Where the application meets the Programme requirements, the PFI requests funding from NADF before disbursing the approved loan to the borrower.

Interest rates are concessionary and are determined by NADF for each facility through the applicable Offer Letter and On-Lending Agreement.

Participating Financial Institutions are not permitted to charge borrowers above the maximum rate approved by NADF for that facility.

Loan tenure depends on the nature of the agricultural activity and the borrower’s cash flow.

Generally:

• Short-term: up to 12 months
• Medium-term: 13 to 36 months
• Long-term: over 36 months

Moratoriums may also be granted where appropriate to align with agricultural production cycles.

Yes.

Collateral requirements are determined by the participating financial institution in line with its credit policy and NADF guidelines.

Acceptable collateral may include land, movable assets, warehouse receipts, guarantees, insurance-backed instruments and other forms of security appropriate to the nature of the financing.

Yes.

Borrowers are generally required to obtain appropriate agricultural insurance before loan disbursement and maintain coverage throughout the loan period, as required by the Programme and the participating financial institution.

No.

NADF does not bear the borrower’s credit risk under the Onlending Programme.

Under both the Fully Funded and Blended Finance modalities, the Participating Financial Institution (PFI) retains 100% of the end-borrower credit risk. PFIs are responsible for conducting credit appraisal, approving borrowers, managing the loan portfolio, and recovering the loans in accordance with their lending policies and the Programme guidelines.

Borrowers are expected to:

• Use the funds only for approved purposes
• Comply with the loan agreement
• Maintain required insurance
• Keep appropriate project records
• Cooperate with monitoring and evaluation activities conducted by the PFI and NADF.