Grants: Another Way To Source Funding For Your Agribusiness

Availability of capital is critical to launching any business par­ticularly agribusiness. Many would-be entrepreneurs with nice and profitable agribusiness ideas have not been able to kick-start them due to paucity of funds. To solve this prob­lem I had in my previous article entitled, “The Challenge of Funding Your Agri­business,” discussed traditional ways of raising startup capital for budding entrepreneurs.

These include personal savings, family and friends, facilitators, cooperatives etc. However, many have written to say they were still experienc­ing some difficulties in raising funds for their business. This prompted me to search for other ways to source funds for start- up capi­tal to give effect to your dream business.



I found that there are various grants intending farmers can access in Nige­ria but many either do not know about them or lack knowledge about how to ac­cess them. These are some of the grant: Central Bank of Nigeria Anchor Borrowers Programme This provides farmers with financ­ing of input, training and techn Availability of capital is critical to launching any business par­ticularly agribusiness. Many would-be entrepreneurs with nice and profitable agribusiness ideas have not been able to kick-start them due to paucity of funds.

To solve this prob­lem I had in my previous article entitled, “The Challenge of Funding Your Agri­business,” discussed traditional ways of raising startup capital for budding entrepreneurs. These include personal savings, family and friends, facilitators, cooperatives etc. However, many have written to say they were still experienc­ing some difficulties in raising funds for their business.

This prompted me to search for other ways to source funds for start- up capi­tal to give effect to your dream business. I found that there are various grants intending farmers can access in Nige­ria but many either do not know about them or lack knowledge about how to ac­cess them. These are some of the grant: Central Bank of Nigeria Anchor Borrowers Programme This provides farmers with financ­ing of input, training and technical as­sistance.

This is for smallholder farm­ers engaged in rice, maize or cassava productions. To access the funding one has to apply through a partnering bank or CBN’s designated agricultural an­chor companies. As a precondition, the applicant must submit documents such as proof of land ownership, farm location, and a business plan.

Nigeria Incentive-Based Risk Shar­ing System for Agricultural Lending (NIRSAL) This is another CBN initiative de­signed to mitigate the risk agricultural lending by providing risk-sharing, tech­nical assistance, and insurance solutions. Small and medium farmers who are into various agricultural ventures can access this. However, the farmer must partici­pate in NIRSAL supported training pro­grammes, submit application and project proposal.

Successful applicants would get assistance through partner financial in­stitutions. Agricultural Credit Guarantee Scheme Fund This is a Federal Government of Ni­geria initiative aimed at supporting ag­ricultural development by guaranteeing loans from financial institutions to farm­ers, thereby reducing lending risks. Nige­rian farmers and cooperatives must use funds for eligible agricultural activities.

It provides up to 75% loan guarantees to participating financial institutions. Inter­ested farmers must apply through banks participating in the ACGSF programme. Evidence of arming activities and a busi­ness plan must be provided.

Youth Empowerment in Agribusi­ness and Food Security (YEAFS) This is designed to attract young Nige­rians into agriculture by providing fund­ing, training, and mentorship. Nigerian youths aged between 18 and 35 interest­ed in starting or scaling an agricultur­al business is eligible. The fund covers grants for equipment, working capital, and market access.

Interested youths can apply online or through participating ag­ricultural training centres. Note that a business plan and attending mandatory agribusiness training sessions are pre­conditions. Tony Elumelu Foundation (TEF) Agribusiness Grants Tony Elumelu Foundation offers grants and training for African entrepre­neurs, including Nigerian farmers.

This is open to Nigerians farmers with agri­cultural ventures and who must partici­pate in the TEF training and mentorship programmes. Farmers can access grants of up to $5,000 and access to training and mentoring. One must apply online through the TEF portal, complete the ap­plication, submit business proposal and attend a 12- week training programme.

United States African Development Foundation (USADF) Agricultural Grants The USADF offers grants to African smallholder farmers and agribusinesses, focusing on economic development and poverty alleviation. Nigerian smallholder farmers and cooperatives can apply. How­ever, priority is given to those involved in sustainable agricultural innovations.

It grants up to $250,000 for innovative agri­cultural projects. Apply through the US­ADF online portal with a detailed project proposal. Approved applications receive funds to support sustainable and innova­tive farming practices.

Bank of Agriculture (BOA) Loans The Bank of Agriculture provides var­ious loan options for farmers at competi­tive interest rates. For this an applicant must be a registered farmer or agribusi­ness owner and must have an active farm or agricultural business. Visit the nearest BOA branch for details.

Submit a busi­ness proposal and farm details and wait for approval and funding. Give these grants I have listed for you. Remember that you need to venture to succeed.

Do not allow paucity of funds to scuttle your dreams. Avoid procrasti­nation; it is the thief of time. In my next article I will discuss how to craft winning agribusiness plan, such that will make it easier for you to attract bank loans or grants.

ical as­sistance. This is for smallholder farm­ers engaged in rice, maize or cassava productions. To access the funding one has to apply through a partnering bank or CBN’s designated agricultural an­chor companies.

As a precondition, the applicant must submit documents such as proof of land ownership, farm location, and a business plan. Nigeria Incentive-Based Risk Shar­ing System for Agricultural Lending (NIRSAL) This is another CBN initiative de­signed to mitigate the risk agricultural lending by providing risk-sharing, tech­nical assistance, and insurance solutions. Small and medium farmers who are into various agricultural ventures can access this.

However, the farmer must partici­pate in NIRSAL supported training pro­grammes, submit application and project proposal. Successful applicants would get assistance through partner financial in­stitutions. Agricultural Credit Guarantee Scheme Fund This is a Federal Government of Ni­geria initiative aimed at supporting ag­ricultural development by guaranteeing loans from financial institutions to farm­ers, thereby reducing lending risks.

Nige­rian farmers and cooperatives must use funds for eligible agricultural activities. It provides up to 75% loan guarantees to participating financial institutions. Inter­ested farmers must apply through banks participating in the ACGSF programme.

Evidence of arming activities and a busi­ness plan must be provided. Youth Empowerment in Agribusi­ness and Food Security (YEAFS) This is designed to attract young Nige­rians into agriculture by providing fund­ing, training, and mentorship. Nigerian youths aged between 18 and 35 interest­ed in starting or scaling an agricultur­al business is eligible.

The fund covers grants for equipment, working capital, and market access. Interested youths can apply online or through participating ag­ricultural training centres. Note that a business plan and attending mandatory agribusiness training sessions are pre­conditions.

Tony Elumelu Foundation (TEF) Agribusiness Grants Tony Elumelu Foundation offers grants and training for African entrepre­neurs, including Nigerian farmers. This is open to Nigerians farmers with agri­cultural ventures and who must partici­pate in the TEF training and mentorship programmes. Farmers can access grants of up to $5,000 and access to training and mentoring.

One must apply online through the TEF portal, complete the ap­plication, submit business proposal and attend a 12- week training programme. United States African Development Foundation (USADF) Agricultural Grants The USADF offers grants to African smallholder farmers and agribusinesses, focusing on economic development and poverty alleviation. Nigerian smallholder farmers and cooperatives can apply.

How­ever, priority is given to those involved in sustainable agricultural innovations. It grants up to $250,000 for innovative agri­cultural projects. Apply through the US­ADF online portal with a detailed project proposal.

Approved applications receive funds to support sustainable and innova­tive farming practices. Bank of Agriculture (BOA) Loans The Bank of Agriculture provides var­ious loan options for farmers at competi­tive interest rates. For this an applicant must be a registered farmer or agribusi­ness owner and must have an active farm or agricultural business.

Visit the nearest BOA branch for details. Submit a busi­ness proposal and farm details and wait for approval and funding. Give these grants I have listed for you.

Remember that you need to venture to succeed. Do not allow paucity of funds to scuttle your dreams. Avoid procrasti­nation; it is the thief of time.

In my next article I will discuss how to craft winning agribusiness plan, such that will make it easier for you to attract bank loans or grants..