IFAD-VCDP calls for flexible insurance, loan packages for farmers in Niger
Niger State Program Calls for Flexible Loans and Insurance for Farmers
NIGER STATE—The Federal Government, in collaboration with the International Fund for Agricultural Development (IFAD), is urging financial and insurance institutions to develop flexible loan and insurance packages for farmers ahead of the upcoming farming season.
During a meeting in Minna with executives from Commodity Alliance Financing (CAF), Hajiya Hadizat Isah, the state program coordinator for the Value Chain Development Programme (VCDP), emphasized the need to facilitate access to financial services for rice and cassava farmers involved in the initiative.
“The meeting was convened to explore strategies for improving access to loans and insurance,” Isah stated. She highlighted that IFAD-VCDP has established CAF structures in nine local government areas to support farmers, particularly as the program approaches the end of its operations in Nigeria.
Isah noted concerns raised by farmers regarding stringent loan conditions and urged financial institutions to reassess policies that complicate loan repayment. She also encouraged CAF leaders to educate farmers about new insurance products, particularly those that cover crops and produce during transit.
“Farmers should stay informed about the programs and products offered by financial and insurance entities, including equipment financing schemes,” Isah added.
Engr. Mohammed Ibrahim Kanko, chairman of CAF, echoed her remarks, requesting that financial institutions relax their policies to allow easier access to loans and insurance in light of rising agricultural costs. He highlighted the financial pressures faced by farmers after obtaining loans, which are exacerbated by increasing production expenses.
The chairs of the CAF in Katcha and Wushishi Local Government Areas, Mohammed Musa Kambari and Ahmed Abdullahi Wasagi, respectively, committed to updating farmers in their communities about the meeting outcomes and new offerings by financial institutions. They expressed concerns about the increasing costs of farming inputs, indicating that many farmers now rely on loans as the rainy season approaches.
Representatives from financial and insurance institutions assured their ongoing support for farmers enrolled in the program even after IFAD-VCDP’s departure from Nigeria. Sunday Nenmene, a representative from the Development Exchange Centre (DEC), stated the organization will maintain its business relations with farmers identified in the program.
“We have the names of these farmers in our database and intend to continue our engagements with them following VCDP’s exit, as their activities have significantly enhanced our outreach and operations,” Nenmene said.
