FCMB’s agribusiness finance model boosts Nigerian farmers’ yields and incomes

FCMB’s agribusiness unit, active since 2012, finances the entire agricultural value chain—from input suppliers and farmers to processors and exporters—using a value‑chain and ecosystem model that links farmers to aggregators who provide inputs, extension services and guaranteed markets. According to FCMB’s Divisional Head of Agribusiness, Kudzai Gumunyu, one aggregator that started with N16 million in financing now supports over 300,000 farmers nationwide, helping them achieve average maize yields of 4.2 tonnes per hectare—well above the national average of 1.5–2 tonnes—and earn prices about 38 % higher than informal market rates. The bank’s risk‑based approach evaluates inputs, yields, market access and off‑taker agreements before disbursing loans, contributing to a low non‑performing loan ratio and an agriculture exposure of over 13 % of its assets, far above the sector average of ~4 %. FCMB also offers drought/flood insurance, USSD and agency banking for rural farmers, women‑ and youth‑focused SheVentures loans at rates as low as 9 %, and support for agritech startups. Looking ahead, it stresses the need for better rural infrastructure, storage and mechanisation to cut post‑harvest losses that can reach 40‑60 % of grain and fruit harvests.

Will FCMB’s value‑chain financing model inspire other banks or policymakers to replicate similar inclusive, risk‑managed agricultural lending to boost Nigeria’s food security and non‑oil exports?

SOURCE: https://nairametrics.com/2026/06/26/how-fcmb-helped-build-an-agribusiness-serving-300000-farmers/