UK pledges £204m for Nigeria’s agriculture growth

The United Kingdom Foreign, Commonwealth and Development Office (FCDO) has reaffirmed its commitment to driving private-sector investment into Nigeria’s agricultural sector, pledging to leverage £204 million to enhance climate-resilient farming and economic growth.

This funding will be channeled through Propcom+, an eight-year agricultural market development initiative designed to support smallholder farmers and agribusiness SMEs in regions affected by climate change and conflict. The programme, running from 2023 to 2030, aligns with the UK’s climate-resilient growth agenda, targeting sustainable food systems that mitigate environmental risks while boosting productivity.

According to Mrs. Adiya Ode, Country Representative for Propcom+, the initiative aims to improve the resilience of Nigeria’s rural economy by tackling economic, social, and environmental challenges in the food and land-use system. The programme seeks to enhance food security, improve nutrition, and facilitate the adoption of sustainable agricultural practices by over four million Nigerians, with 50% of beneficiaries being women.

As a market facilitator, Propcom+ will work to remove constraints within rural market systems, enabling smallholders and entrepreneurs to thrive in a climate-smart economy. By reducing greenhouse gas emissions, increasing incomes, and ensuring natural ecosystem preservation, the programme aspires to build a more sustainable and inclusive agricultural sector.

Additionally, the UK government has committed £95 million directly to the programme, supporting Nigeria’s transition to a resilient agri-food system that not only boosts economic opportunities but also addresses underlying causes of insecurity in rural areas.
Source- Guardian

Expert Review for Agri-Food Stakeholders
The UK’s commitment to leveraging £204 million in private sector investment through Propcom+ is a major boost for Nigeria’s agribusiness landscape, particularly in climate-vulnerable regions. Here’s what key stakeholders should consider:

1. Financing Access for Smallholders & SMEs
   Agribusinesses often struggle to access affordable financing, especially in rural markets. The funding from Propcom+ could unlock new investment opportunities, allowing smallholders and SMEs to scale operations and adopt climate-smart agricultural technologies.
2. Market System Strengthening
   As a “market facilitator,” Propcom+ will not act as a direct financier but will identify and address bottlenecks in Nigeria’s agricultural value chains. This approach could significantly improve market efficiencies, logistics, and access to premium markets for smallholder farmers.
3. Climate-Resilient Agriculture & Food Security
   With Nigeria experiencing rising climate challenges, investments in climate-smart practices will be essential. Propcom+ will promote sustainable farming techniques, helping farmers mitigate climate risks while boosting productivity and food security.
4. Gender Inclusion & Economic Growth
   The programme’s focus on empowering women (50% of beneficiaries) aligns with global trends in gender-inclusive agricultural development. Women-led agribusinesses could benefit significantly from improved access to markets and financial support.
5. Reducing Conflict & Strengthening Rural Livelihoods
   By addressing economic drivers of insecurity, such as poverty and lack of market access, the programme could play a role in stabilizing rural communities. Stronger rural economies often lead to lower migration to urban areas and a reduction in agri-related conflicts.

Call to Action for Agri-Food Stakeholders
For agribusiness investors, farmers, policymakers, and value chain actors, the success of Propcom+ depends on active engagement. Stakeholders should explore partnerships, align with the programme’s sustainability goals, and leverage available funding to drive innovation and competitiveness in Nigeria’s agricultural sector.

This initiative presents a golden opportunity to reshape Nigeria’s rural economy, enhance food security, and drive inclusive agribusiness growth. Agrifood leaders must position themselves strategically to maximize the potential benefits of this UK-backed initiative.