Our Mandates

Empowering Agriculture in Nigeria

This page outlines the core mission and functionalities of the National Agricultural Development Fund (NADF), established in 2022 via an act of the National Assembly, known as the National Agricultural Development Fund (Establishment) Act 2022 to address critical challenges in Nigeria's agricultural sector.

01
BRIDGING THE FUNDING GAP: RELIABLE RESOURCES, STABLE GROWTH
Reliable Funding: A key focus of NADF is providing a consistent stream of financing for agricultural initiatives. Limited access to credit has long been a hurdle for Nigerian farmers. NADF aims to bridge this gap by establishing a sustainable funding mechanism.
Multiple Funding Sources: The NADF Act outlines diverse sources for the fund, ensuring long-term stability. These include contributions from the Federal Government, a share of natural resource development funds, bank profits, petroleum taxes, import duties on specific agricultural products, and allocations from the National Assembly.
02
CULTIVATING FOOD SECURITY AND TRANSFORMATION: BOOSTING PRODUCTION, MODERNIZING THE FUTURE
Boosting Food Production: NADF plays a vital role in ensuring food security for Nigeria's growing population. By providing financial resources, the fund aims to stimulate increased food production across various agricultural value chains. This can involve supporting initiatives that improve crop yields, livestock rearing, and overall agricultural productivity.
Modernization for the Future: The mandate extends beyond just increasing production. NADF aims to foster agricultural transformation by promoting the adoption of modern technologies and practices. This could involve supporting initiatives in areas like:
Precision agriculture: Using data and sensors to optimize resource use.
Improved mechanization: Making tractors, harvesters, and other equipment more accessible to farmers.
Climate-smart agriculture: Practices that enhance resilience to climate change.
03
FACILITATING ACCESS TO FINANCE FOR FARMERS: TAILORED SOLUTIONS, EASIER ACCESS
Tailored Financial Products: A key aspect of NADF's mandate is to design financial products specifically suited to the needs of Nigerian farmers. Traditionally, farmers have faced difficulties accessing loans due to limited collateral and perceived risks. NADF is developing "Farmer Friendly Finance" products (details to be announced) alongside loan guarantee programs to mitigate risks associated with agricultural lending. This can incentivize financial institutions to participate in on-lending to farmers.
On-lending Through Existing Channels: NADF will not provide direct loans to farmers. Instead, the Act states that the Fund will channel its resources through appropriate financial institutions for on-lending to farmers and agribusinesses. This approach leverages the existing banking infrastructure while potentially offering farmers more favorable loan terms.
04
STRENGTHENING THE AGRICULTURAL ECOSYSTEM: INVESTING IN KNOWLEDGE, BUILDING RESILIENCE
Investing in Knowledge and Innovation: The NADF mandate goes beyond just financial resources. The Fund can allocate grants for targeted research initiatives aimed at improving agricultural productivity and sustainability. Additionally, NADF can support capacity building programs to enhance the skills and knowledge of farmers, extension agents, and other stakeholders. Moreover, the NADF can provide financial support for developing market information systems, which can improve agricultural value chain transparency and benefit farmers.
Special Agricultural Zones and Offices: The Act empowers NADF to finance the establishment of special agricultural zones across Nigeria's geo-political zones. These zones could serve as hubs for agricultural activity, attracting investment and fostering innovation. Additionally, the Act allows for funding special agricultural offices in each state, facilitating outreach and program implementation at the local level.
Emergency Response and Preparedness: NADF can allocate funds for emergency situations to support agricultural recovery efforts in the event of disease outbreaks or other unforeseen crises.
05
COLLABORATION FOR SUCCESS: WORKING TOGETHER FOR IMPACT
Working Together for Impact: The NADF Act recognizes the importance of collaboration in achieving agricultural development. The Fund is expected to work with various stakeholders, including:
Federal and State Ministries of Agriculture
Research institutions
Farmer cooperatives and associations
Private sector investors
International development partners
Collaboration with donor institutions and international development partners allows NADF to leverage expertise and resources for achieving food security goals. The NADF Act also grants the Fund the flexibility to undertake additional activities deemed necessary by the President, following consultation with the Minister of Agriculture. This ensures NADF's programs can adapt to evolving needs in the agricultural sector.