The Tragic Reality of Agricultural Loan Schemes in Nigeria

One of my mentees once applied for a NIRSAL agriculture loan ₦6 million, to be precise.He attended the trainings, filled every form, passed all screenings, and finally got approved.But at the point of disbursement, one top official told him:“Before we release your ₦6 million, you must bring ₦4 million cash upfront.”Imagine that.He would receive only ₦2 million to run his business, yet be expected to repay ₦6 million in the official records.Hello, and welcome back to Bashan Talks.Today, we’re addressing something that should have changed lives in Nigeria, but instead has destroyed the hopes of many dreamers agricultural funding schemes.From NEXIM Bank to the Bank of Industry, the Bank of Agriculture, and NIRSAL, the promises are always the same:₦5 million here, ₦10 million there, zero collateral, empowering farmers.But let’s be honest many of these schemes only exist on paper.A Real Story From a MenteeLike I mentioned earlier, my mentee did everything right.Months of training. Endless forms. Multiple screenings.He got to the final stage.Then came the “condition.”₦4 million upfront.He begged.He negotiated.They refused.He walked away frustrated, heartbroken, and completely drained.Today, he tells everyone: “Agriculture loan for Nigeria? Na scam.”And truly, can you blame him?Because what happened to him is happening across the country in NIRSAL, in the Bank of Agriculture, even in NEXIM.My Own Experience Was No Different Years ago, I applied for an agriculture business loan with NEXIM Bank.I ticked every box.Met every requirement.Got approval.But one official simply decided: “My brother, your face no good.”And that was it.No loan.No explanation.Just someone’s personal discretion killing a legitimate business plan.Later, I discovered something shocking NEXIM had a special program called a managed facility. The bank gives you a loan without collateral, their staff monitors the process, and the goods you purchase become the security.Brilliant concept, right?Unfortunately, it was never meant for ordinary Nigerians.Only a select few ever got access.I even had a face-to-face meeting with the Managing Director at that time.He admitted that many of those loans never returned.Why?Because they were given to the usual suspects people who know somebody that knows somebody.So when the government later says:> “Nigerians are not repaying loans,”I ask:> Which Nigerians?Because real farmers never even touch that money.The Bitter Irony: Foreign Companies Get BillionsHere’s the painful part:Foreign-owned companies registered in Nigeria get billions every year from these same banks.Some even receive ₦3 billion annually for “agriculture projects.”Yet their profits rarely stay in Nigeria.I personally know an Indian businessman with a shabby Lagos office where Nigerian workers earn peanuts under ceiling fans.But in Dubai?My brother, the man lives like a prince all funded by Nigerian loans.Foreigners get the billions.Nigerian farmers can’t get ₦1 million without “connection.”We Say We Want To Reduce Poverty But How?If the same 1% keeps eating the whole cake, how will the country rise?This is not just about bad policies.It’s about bad people inside the policies.A system where connections matter more than competence will always kill dreams before they are born.But Let Me Give Credit Where It’s Due There is one government body that deserves respect:The Nigerian Export Promotion Council (NEPC)Those people actually do their work.You don’t need to know anybody.They guide you.Support you.Connect you with buyers.If every agency behaved like NEPC, Nigeria would not only feed itself it would feed the world.Nigeria’s Real Problem Is Not Money Nigeria does not lack funds.Nigeria lacks management and morality.We need:

✔ Policies that ensure funds reach real farmers