Federal Government, HortiNigeria collaborate on financing strategy for horticulture sector; tomato prices surge 320% year-over-year in 2024: National Bureau of Statistics

May 10, 2025 (Weekly Trust) –

The federal government has appealed to financial institutions to develop a financing strategy that would enable smallholder horticultural farmers to engage in sustainable production.

Minister of Agriculture and Food Security, Senator Abubakar Kyari, made the appeal at the workshop to unlock sustainable finance for Nigeria 's horticulture sector, organized by HortiNigeria in collaboration with NIRSAL on Tuesday in Abuja .

'We need to have financing that would afford farmers to have structured investments over a long period of time,' the minister said.

Sen Kyari stated that horticulture, the cultivation of fruits, vegetables, herbs, spices, flowers, and ornamentals, is far more than a sub-sector of agriculture.

'It is a dynamic engine for rural transformation, job creation, improved nutrition, and trade diversification. With increasing urbanisation and growing awareness of healthy diets, consumer demands for fresh and diverse produce is rising rapidly. Horticulture is well positioned to meet these demands.

'It is also important to understand how the pricing of horticultural produce directly fuels food inflation in Nigeria . Tomatoes and peppers, essential ingredients in virtually every Nigerian kitchen, serve as the baseline commodities for daily cooking.

'When the prices of these staples spike, they set off a chain reaction that affects the cost of meals across homes, restaurants, and food vendors. According to the National Bureau of Statistics in 2024, tomatoes led the food price index with a staggering 320% year-on-year increase, followed by peppers and other produce. These spikes and progressions affect low-income households, underlining the urgent need for more stable production, better storage, and accessible finance across the horticulture economy,' he said.

The Country Director, IFDC Nigeria, Dr. Yusuf Dramani said the organisation was working with NIRSAL to 'Bridge a critical gap in Nigeria's agricultural financing landscape.

'Despite agriculture's prominent role in our national economy and employment, access to formal finance remains a significant barrier, especially within the horticulture sub-sector.

'However, we believe that these challenges can be transformed into opportunities if financial institutions are empowered with the right knowledge, tools, and risk mitigation strategies. This training is therefore not just timely, but strategic. It will help participating institutions better understand the business operations, dynamics, and opportunities across the horticulture value chain-from production to marketing, aggregation, processing, and logistics,' he said.

The Programme Director for HortiNigeria, Mohammed Salasi Idris, said that the gold of the organisation is to 'Unlock finances to the tune of 6 million euros ' adding that 'We have gone over 50% of that.'

Speaking about the main obstacles, Idris stated that the CBN's MPR, which was raised from 18% to 27%, presented a major obstacle adding that the banks will also do it once CBN sets the MPR.

One of the biggest obstacles facing farmers in southern Nigeria , he noted, is the cost of labour.

'Most of the labour from the reports we got also comes from across the border. And you know what happened to Naira and the CFA Franc. It was favourable in the last two, three years, but the moment Naira became weak against CFA, most of the labour that comes in from the Republic Benin and other Francophone countries decided to return to their country, which makes labour very expensive,' Idris said.

Also speaking, the Ambassador of the Kingdom of the Netherlands to Nigeria , Bengt van Loosdrecht , who was represented by Mr Folusho Adejoro , Policy Advisor, Food Security and Climate at the Embassy said horticulture, can be a powerful driver of economic growth, jobs and better nutrition adding that for this to happen, 'Access to finance must be a part of the solution.

'Too many of our farmers, marketers and entrepreneurs in this sector are working hard but remain invincible to formal finance,' he stated adding that the meeting was 'About building bridges between the financial sector and the horticultural value chain so that banks and other financial institutions can better understand the businesses behind the numbers, the seasons behind the cash flows and the people behind the projects.'

Funded by the Embassy of the Kingdom of the Netherlands (EKN) in Nigeria , the HortiNigeria program (2021-2025) seeks to support the growth of an inclusive and sustainable horticulture industry that enhances food and nutrition security in Nigeria .