Experts have called for financial literacy among farmers towards unlocking growth in the Nigerian agricultural sector.
The call was made over the weekend at a financial management training for farmers and agribusinesses.
Speaking at the event, Advisory and Research Lead at Vestance Limited, Mr. Razaq Fatai said improved financial management will not only boost farmers’ ability to secure funding but also drive strategic decision-making for long-term growth.
Fatai said that these skills are crucial for attracting sustainable private funding and managing investments effectively, reducing reliance on government support and bolstering the agricultural sector’s long-term growth.
Over the last decade, federal and state governments, along with international development organisations, have invested heavily in agriculture in Nigeria. While progress is evident in sectors like rice production, empowering farmers with financial management skills would unlock even greater potential.
In his presentation, Vestance Limited Financial Advisory Lead, Mr. Adetayo Adedeji highlighted that “Farmers and agribusinesses often miss out on valuable funding opportunities and sustainable growth due to limited financial understanding.”
“By developing their skills in financial management, they can significantly optimise their operations and enhance their financial positions, making them more attractive to investors,” he added.
The duo’s argument is bolstered by a recent academic study by researchers at the University of Nigeria and Edo State University, which found “that financial literacy significantly predicts performance, access to credit facilities, and mode of payment preferences among rural farmers in Nigeria. This contribution…is important as it shifts research attention from the dominant topics of diversification, land use, agricultural policies/program, and agricultural loans to the neglected area of financial literacy…”
The one-day training provided participants with the necessary tools to analyse the financial health of their agricultural businesses, develop sound financial plans and budgets, make informed investment and financing decisions, and improve reporting and record-keeping for better transparency.
“Our aim with the training is to demystify finance for farmers and agribusiness operators,” Fatai explained.
“Beyond providing access to funding, we believe that equipping agribusinesses with the skills to manage and optimise their finances is essential for the sustainable development of Nigeria’s agricultural sector.”
Participants at the training ranged from representatives from small to big agribusinesses as well as government institutions.
