FG signs financing pact for $158m value chain programme in Northern Nigeria
The Federal Government of Nigeria, in partnership with the International Fund for Agricultural Development (IFAD), has signed a landmark $158.15 million financing agreement to launch the Value Chain Programme in Northern Nigeria (VCN)—a transformative agricultural initiative set to uplift over 3.1 million rural Nigerians across nine states.
Co-financed by IFAD, the French Development Agency (AFD), and the Nigerian Government, the eight-year programme targets Borno, Bauchi, Kano, Katsina, Kebbi, Jigawa, Sokoto, Yobe, and Zamfara. It aims to deepen value addition, enhance food security, and reduce poverty in northern Nigeria’s agri-food economy.
Vice President Kashim Shettima, speaking at the signing ceremony at the Presidential Villa, described the VCN as “a declaration of promise” under President Tinubu’s Renewed Hope Agenda, positioning agriculture not as a burdened sector, but one of untapped abundance.
The VCN is strategically aligned with the Special Agro-Industrial Processing Zones (SAPZs) initiative and is expected to provide raw material pipelines to agro-industrial hubs, while improving rural infrastructure, including the construction of 229 km of access roads.
The initiative is inclusive in its design, targeting women, youth, persons with disabilities, and returnees, and leveraging digital platforms for transparency and result-based management. The project is also projected to create 30,000 direct jobs while boosting climate-smart agriculture, post-harvest processing, and financial inclusion.
Stakeholder buy-in was evident with endorsements from the National Assembly, state governors, and development partners, who signed a Joint Roadmap for Accelerated Start-up to fast-track implementation.
Source: Tribune Online
Expert Review for Agri-Food Stakeholders
The VCN initiative marks a pivotal shift in Nigeria’s rural development strategy. Below are key takeaways and strategic considerations:
- Strategic Synergy with Agro-Industrial Hubs
By aligning with the SAPZs, the VCN creates a value chain loop—linking farm production with processing zones and export markets. This coherence offers a powerful blueprint for inclusive agribusiness scaling in Nigeria’s northern region. - Inclusion as a Lever for Productivity
Targeting vulnerable and underserved groups (women, youth, returnees) ensures both social impact and economic participation, making the programme a platform for equity-driven agricultural transformation. - De-risking Northern Agricultural Investment
The programme’s multilateral funding, combined with government backing, de-risks private sector participation in historically underserved areas. This opens investment channels for SMEs, aggregators, and agritech platforms to plug into a supported ecosystem. - Emphasis on Climate-Smart and Post-Harvest Solutions
By focusing on climate resilience and post-harvest handling, the VCN addresses two chronic issues—climate vulnerability and food loss. This will increase the shelf-life and market value of produce, enhancing income for farmers and processors alike. - Digital Monitoring and Access Infrastructure
The use of digital tools for impact tracking sets a new standard in programme governance. The inclusion of 229 km of rural roads further resolves a critical bottleneck—first-mile market access. - Implications for Local Governments and Agripreneurs
Local governments must position themselves as facilitators of land access, community mobilisation, and private partnerships. Agripreneurs should explore positioning as input suppliers, processors, or digital solution providers within the VCN framework.
Conclusion
The VCN programme is more than a funding arrangement—it is a structural lifeline for Nigeria’s northern agricultural economy. With implementation expected to begin swiftly, stakeholders must now shift from passive interest to proactive engagement. This is a unique window to reshape agriculture in northern Nigeria for resilience, competitiveness, and shared prosperity.
