Luckily, we've come up with a simple approach to make Nigeria’s smallholder farmers creditworthy. So let's just dive right in!
Another significant example is the programme provided by the United States Agency for International Development (USAID). The USAID offers assistance to Nigeria's smallholder farmers to boost their farming business in Nigeria. This way, farmers are educated on sustainable means to have access to useful and affordable financial products. Consequently, this leads to improved performance on their farms, increase in revenue and inevitably, improves food security in the country.
Still not convinced?
The extension agent is responsible for providing the knowledge and information that will enable a farmer to understand and make a decision about a particular innovation or concept.
Furthermore, extension agents improve the creditworthiness of Nigeria’s smallholder farmers in Nigeria by carrying out the necessary activities required in applying for agricultural credit. T The agent's work is usually highly structured and based on existing government policies and programmes.
The N-power Agro Volunteers Corps Program is an example of a program that offers this kind of service across the country. They disseminate the knowledge that has been aggregated by the Federal Ministry of Agriculture and Rural Development in the area of extension services.
One may suggest that credit institutions give smallholder farmers loans in cash which at first sight, looks like a great plan. But technically, what the farmers get is the power of purchase. The money itself is ineffective as it does not grow anything and the farmer may decide to spend the money instead of cultivating. The funds granted if converted into physical assets increases productivity and income.