A finance expert, Ereifemi Akeredolu, has emphasized the need for a sustainable financing model for Nigeria's agricultural sector. According to Akeredolu, who is the Managing Director of First Trustees Limited, a subsidiary of FirstHoldCo Plc, sustainable growth in the sector requires more than just funding. She stressed that clear responsibilities, sound governance, and proper risk allocation are essential for attracting investments and ensuring sustainable growth.
Akeredolu made these remarks at a maiden Commercial Trust colloquium organized by First Trustees Limited in Lagos. The event, themed "Beyond Intervention Funds: Building Sustainable Financing Models for Nigerian Agriculture," brought together stakeholders from the public and private sectors to discuss financing options for the agricultural sector. The discussions focused on financing models beyond government intervention funds, with participants examining issues around agricultural value chains, risk allocation, productivity, and private-sector investment.
According to Akeredolu, trust institutions have a crucial role to play in establishing accountability, protecting the interests of parties involved in transactions, and ensuring that agreed obligations are fulfilled. She believes that such functions can help create structures capable of supporting long-term investment in agriculture. This, she argues, can help attract private capital to viable businesses across the agricultural value chain.
The agricultural sector remains a significant contributor to Nigeria's food supply, employment, and industrial activities. However, access to sustainable financing remains a key challenge for businesses operating in the sector. Akeredolu's call for a sustainable financing model highlights the need for innovative solutions to address this challenge and unlock the sector's full potential.
The event also featured the unveiling of an upgraded digital platform by First Trustees, which aims to digitize some of its trust-service processes and reduce paperwork and documentation requirements. This development is expected to improve the efficiency and effectiveness of trust services, making it easier for businesses to access financing and other services.
The discussions at the colloquium highlighted the importance of developing financing structures that can attract long-term private capital to viable businesses across the agricultural value chain. Participants emphasized the need for a collaborative approach to address the challenges facing the sector and unlock its full potential. By working together, stakeholders can develop effective solutions to support sustainable growth and development in the agricultural sector.
Key to achieving sustainable growth in the agricultural sector is the development of reliable structures surrounding transactions, which can help build confidence among investors. With sound governance, clear responsibilities, and proper risk allocation, Nigeria's agricultural sector can attract the investments it needs to thrive.
Key points
- Sustainable growth in Nigeria's agricultural sector requires clear responsibilities, sound governance, and proper risk allocation.
- Trust institutions can play a crucial role in establishing accountability and protecting the interests of parties involved in transactions.
- Access to sustainable financing remains a key challenge for businesses operating in Nigeria's agricultural sector.
