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The National Agricultural Development Fund (NADF) is making arrangements with Cross River State Government to introduce a new sub-national agricultural finance framework that will reduce risk for investors and expand credit access for farmers to boost agribusiness investment and rural prosperity,
Mohammed A. Ibrahim, executive secretary, NADF and Mr. Bassey Otu, Governor of Cross River State said when NADF management paid him a courtesy visit in Calabar.
They discussed the development of a non-ISPO (Irrevocable Standing Payment Order) de-risking mechanism that will attract private capital into the state’s agricultural value chains.
Governor Otu welcomed the collaboration, directing the State Ministry of Agriculture and Irrigation to set up a joint technical committee with NADF and PROPCOM+ to review and adapt the proposed model to the realities of the state’s agricultural ecosystem.
The committee is expected to design a scalable framework that supports local agribusinesses, promotes credit guarantees, and creates a predictable environment for lenders and investors.
According to Ibrahim, the collaboration aligns with NADF’s mandate to deepen agricultural financing across Nigeria and foster private sector participation in food production, processing, and distribution.
He commended Governor Otu for creating the Cross River State Agricultural Development Fund, describing it as a bold step toward commercialising agriculture and mobilising capital for smallholder farmers and agri-SMEs.
He also lauded the state’s Project Grow initiative, which targets the empowerment of farmers and agribusinesses across all 18 local government areas, as well as the establishment of an Institute for Agricultural Research (IAR) substation in the state—an investment he said would enhance innovation, data-driven policy, and yield improvement.
“The Cross River model demonstrates that subnational leadership is essential to transforming agriculture into a business,” Ibrahim said. “By integrating finance, research, and market systems, the state is positioning itself as an agribusiness hub for southern Nigeria.”
He emphasised that NADF’s collaboration with subnational governments supports President Bola Ahmed Tinubu’s Renewed Hope Agenda on food security and economic diversification. “States are the true engines of Nigeria’s agricultural growth. Our role is to create enabling frameworks that unlock capital and reduce investment risk,” he added.
Drawing parallels to the Brazilian model of agricultural transformation, Ibrahim noted that the combination of strong state-level leadership, innovative financing, and technology-driven farming could drive inclusive growth and ensure long-term food security.
The partnership marks a significant step in the evolving landscape of agricultural finance in Nigeria, signaling a shift from dependency on federal guarantees to a more market-based, state-driven approach that incentivizes innovation and private sector confidence.
The NADF team was accompanied by its technical partner, PROPCOM+, led by Adiya Ode, the Country Director.
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