German-backed AgFIN Project Delivers N9 Billion in Loans to Northwest Nigerian Farmers

Context The Agricultural Finance project (AgFIN), funded by Germany’s GIZ, operated from 2016 to 2024 across Kano, Kaduna and Kebbi states. Its goal was to ease farmers’ access to credit by working with 11 Nigerian financial institutions to design loan products for maize, potato and rice value chains. The program emphasized market‑driven financing, meaning all funds were extended as commercial loans without grants or concessional terms.

Key Facts GIZ disbursed over N9 billion to improve farmers’ access to finance in the region. With an €8 million budget, AgFIN facilitated approximately €42 million (≈N9 billion) in financing through those partner banks. Since 2023, more than 300 students and 20 lecturers have received training under the GIZ‑AgFIN collaboration, including a “training of trainers” module that produced a specialized curriculum now embedded in several agricultural departments.

What It Means The loans were channeled through institutions such as Access Bank (NGX: ACCESS, market cap ≈₦1.2 trillion, share price +3.2% YTD), Zenith Bank (NGX: ZENITHBANK, market cap ≈₦1.5 trillion, share price –1.1% YTD) and First Bank of Nigeria (NGX: FBNH, market cap ≈₦0.9 trillion, share price +0.8% YTD). These banks reported a combined increase of roughly 4.5% in their agricultural loan books during the AgFIN period, outpacing the sector average of 2.1%. Interest rates on the AgFIN‑linked products averaged 14% per annum, comparable to prevailing commercial rates for agribusiness loans in Nigeria. The training component aims to build local capacity, reducing reliance on external expertise. Curriculum modules cover loan application, financial record‑keeping and risk management, and have been adopted by departments of Agricultural Technology, Agricultural Extension and Agribusiness at participating colleges. To watch next: stakeholders will monitor loan repayment rates, the potential rollout of the curriculum to additional states, and whether state governments adopt the AgFIN model to sustain credit growth in Nigeria’s agricultural sector.