The National Agricultural Development Fund (NADF) has validated its proposed Non-Interest Finance Framework and Operational Guidelines as part of efforts to expand ethical, asset-backed financing for smallholder farmers and agribusinesses across Nigeria.

The proposed framework was presented at a stakeholder session held on September 22, 2026. It is intended to complement conventional financing models while helping underserved farmers and agricultural businesses gain access to the formal financial system.

NADF Executive Secretary and CEO Mohammed Ibrahim said the framework would establish standards covering governance, risk management and Shari’ah compliance for agricultural interventions delivered through licensed Non-Interest Financial Institutions (NIFIs).

According to NADF Head of Investment Olalekan Alabi, the guidelines set out an operational structure for the design, assessment, approval and monitoring of non-interest agricultural financing.

Alabi noted that the documents are still open technical drafts. Stakeholders have therefore been invited to examine the proposed risk controls and implementation channels before the guidelines are published in their final form.

The initiative received backing from the Central Bank of Nigeria (CBN) and development partners.

CBN Director of Development Finance Advisory, Dr Paul Oluikpe, said the framework could contribute to addressing Nigeria’s agricultural financing gap as the apex bank reduces its involvement in direct intervention lending.

Meanwhile, Deputy Chairman of the CBN Financial Regulation Advisory Council of Experts (FRACE), Professor Bashir Aliyu Umar, said non-interest financing could further advance financial inclusion.

He said the financing model could widen access to formal capital for farming communities as well as commercial agricultural operators.

Source: msmeafricaonline