MICROCAPITAL BRIEF: Nigerian Government and International Fund for Agricultural Development (IFAD) Address Lack of Access to Microfinance in Nigeria with $40m Fund for Rural Farmers

The International Fund for Agricultural Development (IFAD), an agency of the United Nations established to eradicate rural poverty in developing countries, and the Nigerian Federal Government have created a microfinance fund worth NGN 6.1 billion (the equivalent of USD 40 million). The funds will be distributed to rural farmers in 12 Nigerian states by microfinance institutions (MFIs) in the form of microloans.

According to Dr. Sayyadi Abba Ruma, the Nigerian Minister of Agriculture and Water Resources, the loans will be targeted at traditionally marginalized groups such as a women, young people, and people with physical disabilities. The program is slated to last for seven years and aims to not only provide immediate assistance to rural farmers but also to create a foundation for the long term development of a sustainable rural financial system, which will be able to continue to provide microcredit in rural areas.

About the International Fund for Agricultural Development (IFAD):

The International Fund for Agricultural Development (IFAD) is an agency of the United Nations established in 1977. The institution was created as a result of the 1974 World Food Conference. The conference resolved that “an International Fund for Agricultural Development should be established immediately to finance agricultural development projects primarily for food production in the developing countries.” As of January 2010, the organization has invested USD 11.3 billion in 829 projects and programs and additionally secured almost USD 18 billion in co-financing from governments, project participants, multilateral, bilateral and other donors [2].

By Eric McKay, Research Assistant

Bibliography:

[1] The Punch: “FG, IFAD set aside $40m lifeline for rural farmers” by Emeka Ezekiel, 2 February 2010. http://www.punchng.com/Articl.aspx?theartic=Art20100202042025
[2] About IFAD. http://www.ifad.org/governance/index.htm

Additional Links:
Microfinance Universe: International Fund for Agricultural Development (IFAD). https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Fund+for+Agricultural+Development+%28IFAD%29

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