FCMB: Supporting Women, Farmers in Fight Against Hunger in Nigeria
In northeast Nigeria, Babban Gona has transformed farmers’ lives by boosting maize yields with high-yield seeds and fertilizer. Supported by FCMB and Mercy Corps, the program empowers farmers with resources, climate-smart practices, and financial inclusion. FCMB’s increased agricultural lending and partnerships, like with NOMA, have significantly improved farmers’ earnings and access to markets. The bank’s initiatives, benefiting over 320,000 smallholder farmers, highlight its commitment to tackling food insecurity and promoting economic growth in Nigeria’s agricultural sector.
In northeast Nigeria, a female farmer’s life has been transformed. Her maize yields have skyrocketed thanks to Babban Gona, a programme that empowers rural farmers with essential resources and training. “Before joining Babban Gona, I planted any type of seed without planning,” she recounts.
“Now, I harvest 24 to 25 bags of maize. They taught us how to plant with high-yield seeds and how to apply fertilizer.”
Babban Gona is an initiative in northeast Nigeria that empowers rural farmers by providing them with fertilizers, farm inputs, and extension services. This programme, lauded for its remarkable 99.9 per cent repayment rate – unprecedented in the country – enables farmers to acquire essential resources to improve their livelihoods and agricultural productivity.
First City Monument Bank Limited (FCMB), Nigeria’s leading lender to the agriculture sector supports the Babban Gona programme to empower farmers, create agricultural jobs and combat food insecurity.
FCMB’s commitment extends beyond the Babban Gona programme through a collaboration with Mercy Corps aimed at bolstering financial inclusion in Northeast Nigeria. The collaboration focuses on poverty reduction, particularly for rural women, youth, and displaced persons, by improving their income, thus moving them out of chronic vulnerability through expanded economic opportunities and strengthened resilience.
Furthermore, recognizing the region’s vulnerability to climate change and conflict, the FCMB-Mercy Corps partnership introduced climate-smart farming practices to the populace to transform barren land into thriving fields. It did this by equipping farmers with water conservation techniques, sustainable land management practices, and drought-resistant crops to mitigate the effects of erratic rainfall and prolonged droughts. Additionally, access to weather information and early warning systems empowers farmers to make informed decisions, minimizing losses and ensuring the long-term sustainability of agricultural practices in the region.
These interventions are crucial given the rising food prices threatening Nigeria’s food security. InJune 2024, food inflation reached 34.19per cent, according to the National Bureau of Statistics (NBS). While government efforts are underway, FCMB’s contributions are significant. To assuage the plight of Nigerians, the government has made several interventions, including releasing the strategic grain reserves and introducing some level of price control and monitoring. But what has not caught media attention, even though profound, is the intervention by private organizations like FCMB.
In the 2023 financial year, FCMB made appreciable strides in helping to tackle the problem of food security in the nation. Some of the initiatives executed within the year include increased lending to the agriculture sector by 39per cent to N204 billion.
This move will ultimately impact the government’s drive to grow the agricultural sector, which contributes 25 percent to Nigeria’s GDP. The agriculturalsector not only plays a crucial role in the economy but also employs a large portion of the population, making it a vital component of Nigeria’s economic structure and development strategy.
A veritable way to encourage the growth of the industry is access to capital. One of the ways FCMB ensured this was by providing over N18.0 billion in loans at a single-digit interest rate through the Mastercard Foundation partnership, collaboration with Agritech companies such as Agriarche, Extension Africa, Intrio Synergy, Deva Access, and NOMA, operating on its digital banking platform in the Northeast.
A farmer narrated how his earnings jumped from 200,000 naira to 340,000 naira through the NOMA outgrower scheme.” I was able to realize some profit after harvesting. By the time they deducted their funds spent on ploughing, planting and harvesting, and money spent on herbicides, I was able to realize profit of over N340,000 after harvesting,” he recounted.
Besides empowering farmers through single-digit interest loans, enabling them to invest in their businesses and expand their operations, FCMB also facilitated access to markets and training on sustainable farming practices. Additionally, through its network of Master Agents (Aggregators), the bank provided support to over 320,000 smallholder farmers and traders with zero per cent default. Notably, 88% of these beneficiaries were women, and 60per cent were young people, demonstrating FCMB’s commitment to inclusivity.
FCMB’s multifaceted approach to agriculture demonstrates its dedication to empowering farmers and transforming Nigeria’s agricultural sector. By directly tackling food insecurity and fostering economic growth, the lender is helping to build a more sustainable and prosperous future for the nation.
Source Link : https://www.thisdaylive.com/index.php/2024/07/25/fcmb-supporting-women-farmers-in-fight-against-hunger-in-nigeria/
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