From Adanna Nnamani, Abuja
In a nation where fertile land abounds but food security remains elusive, Sterling Bank is pioneering a new path by leveraging financial innovation to empower farmers, transform agricultural value chains and ignite a sustainable revolution in Nigeria’s food system.
The bold approach is turning challenges into opportunities, proving that smart financing can be the cornerstone of a more food-secure future.
According to agric experts and social scientists, Nigeria has over 84 million hectares of arable land stretching across its diverse landscapes.
Yet, despite this abundance, many Nigerian farmers continue to struggle with a fundamental barrier: access to finance.
In 2022, only 7 per cent of farming communities could secure formal bank credit (NBS, 2022), effectively stalling the growth and modernization of one of the country’s most vital sectors. But a quiet revolution is underway, one driven not by expanding farmland but by harnessing innovative financial solutions to empower farmers, increase productivity, and strengthen food systems nationwide.
Agric’s place in Nigeria’s economy
Agriculture is more than just a source of food in Nigeria; it is a backbone of the economy, contributing substantially to the country’s GDP and providing employment to approximately 35 per cent of the workforce, according to the Food and Agriculture Organization (FAO). The sector is multifaceted, comprising four primary sub-sectors: crop production, livestock rearing, forestry, and fishing. Each of these plays a critical role in feeding the population, generating income, and supporting rural livelihoods.
However, despite its importance, the agricultural sector faces numerous systemic challenges. Productivity remains low, infrastructure is often inadequate, climate change and environmental shocks threaten harvests, and post-harvest losses are alarmingly high. Yet, the most persistent obstacle has been the lack of accessible and tailored financial products for farmers, particularly smallholders who form the majority of the agricultural workforce.
Demolishing financing barrier
Conventional commercial banks have traditionally perceived agriculture as a high-risk sector. Factors such as unpredictable weather, pests, disease outbreaks, and lack of collateral have deterred lenders from offering credit to farmers at scale. This risk aversion has left millions of farmers financially excluded, unable to invest in improved seeds, fertilizers, mechanization, or technology that could enhance yields and income.
In recent years, however, encouraging progress has been made. In states like Lagos and Ogun, for instance, 26 per cent and 14 per cent of farmers respectively accessed micro-credit in 2022 (NBS, 2022). More strikingly, nationally, credit to private agriculture surged from N853 billion in the first quarter of 2020 to over N4 trillion by the fourth quarter of 2021, illustrating the transformative impact of focused financial interventions when the sector’s potential is recognized and prioritized.
Sterling Bank leading financial renaissance in agriculture
Sterling Bank has emerged as a leading force driving financial innovation in Nigerian agriculture. The bank’s holistic HEART strategy, focusing on Health, Education, Agriculture, Renewable Energy, and Transportation, guides its investments and solutions to address some of Nigeria’s most pressing development challenges.
Central to Sterling Bank’s agricultural initiative is the Agriculture Finance Value Chain Model (AgFin), a pioneering framework that channels funding beyond individual farmers to encompass processors, aggregators, and input suppliers. This approach strengthens the entire agricultural ecosystem, ensuring sustainability and efficiency throughout the value chain.
“Supporting the agriculture sector means investing in the entire value chain,” explains Abubakar Suleiman, Managing Director and CEO of Sterling Bank. “Our model goes beyond simply lending to farmers; we enable processors, aggregators, and market participants to thrive, creating a robust system that drives growth and resilience.”
Expanding market access
Sterling Bank’s commitment to agriculture is not limited to financing alone. It is deeply integrated with digital innovation and strategic partnerships. Collaborations with agritech startups allow the bank to offer farmers cutting-edge tools such as weather analytics, pest and disease diagnostics, and real-time market intelligence — empowering them to make smarter decisions and mitigate risks.
One standout initiative is SABEX, Sterling Bank’s commodity trading platform that directly connects farmers with buyers. By eliminating middlemen, SABEX ensures farmers receive fair prices promptly, enhancing their income stability and market participation.
Furthermore, Sterling Bank has launched the SWAY-AgFin program to specifically boost access to finance for women and youth, groups historically marginalized in agricultural financing but crucial for sectoral growth and food security.
Agriculture Summit Africa
Beyond direct financing, Sterling Bank plays a strategic role in fostering collaboration across the agricultural sector through its annual Agriculture Summit Africa (ASA). The high-profile forum gathers policymakers, financiers, agribusiness leaders, and development partners to explore innovative solutions, inclusive market access, and policy reforms needed to transform Nigerian agriculture.
Over the years, ASA has attracted prestigious partners including the Mastercard Foundation, the International Finance Corporation (IFC), Leadway Assurance, and state governments like Benue. The summit serves as a catalyst for actionable insights, driving nationwide farmer advisory programs, community outreach via radio, and data-driven policy dialogues that influence government and private sector initiatives.
Palm Valley Partnership
The success of Sterling Bank’s agricultural financing is perhaps best illustrated through its collaboration with Palm Valley Nigeria Limited. Since 2019, Sterling has supported Palm Valley’s rice and maize production projects by providing structured financing that has grown from N276 million to an impressive N819 million by 2024. This funding has empowered more than 2,000 farmers to cultivate over 1,300 hectares, including a pioneering project on hybrid vitamin A maize, which enhances both yield and nutritional quality.
Palm Valley’s journey highlights the power of targeted finance to transform agricultural production and improve rural livelihoods, while attracting further investment into Nigeria’s agribusiness landscape.
Vision for the future
Dr. Olushola Obikanye, Group Head of Agric Finance and Solid Minerals at Sterling Bank, highlights the importance of commodity-backed financing models. By allowing farmers to use their harvests as collateral, Sterling Bank mitigates lending risks and improves liquidity within the sector, a win-win for farmers and financial institutions alike.
Sterling Bank’s active membership in the Nigerian Food Systems Transformation Alliance further cements its role as a key architect in building a resilient, inclusive food system by 2030. This multi-stakeholder platform brings together fast-moving consumer goods companies, financial services, government agencies, and civil society to collaboratively address food security challenges.
Going into the future, Sterling Bank plans to expand its product portfolio with specialised financing for poultry farming, fertilizer procurement, and agricultural machinery. SABEX will continue to bridge supply-demand gaps, ensuring transparency, fairness, and efficiency in agricultural markets.
Nigeria’s agriculture sector is at a critical crossroads. With the right financial instruments, innovative technologies, and collaborative policies, the country can unlock unprecedented growth in food production, rural incomes, and economic development.
Sterling Bank’s AgFin initiative is a shining example of how financial innovation can unlock Nigeria’s agricultural potential, turning food security from an elusive goal into an attainable reality. By championing inclusive access to finance and building strong value chains, Sterling Bank is nurturing the seeds for a more prosperous, food-secure Nigeria.
Sterling Bank Plc stands among Nigeria’s most innovative commercial banks, widely praised for ethical banking, customer advocacy, and bold market leadership. The bank’s OneBank platform revolutionized banking by eliminating local transfer fees, and its HEART strategy channels significant investments into Nigeria’s Healthcare, Education, Agriculture, Renewable Energy, and Transportation sectors. Sterling Bank said it is dedicated to creating financial solutions that empower millions of Nigerians, enabling economic mobility and sustainable development across the nation.
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