The Presidential Implementation Committee on Technology Transfer (PICTT) is developing a framework to attract climate finance for smallholder farmers in Nigeria, aiming to improve access to funding for communities affected by droughts, flooding and other climate-related challenges.

PICTT Chairman, Dr Dahiru Mohamed, announced the initiative at a Taxonomy Validation Workshop on Adaptation and Resilience Solutions organised by the committee in partnership with YAPU Solutions.

He said experts were advocating digital accountability and stronger financial systems to help the agricultural sector respond to the effects of climate change. The proposed framework is intended to make climate financing more accessible to farmers facing environmental risks.

According to Muhammed, the workshop focused on developing an implementation framework for Nigeria’s national taxonomy, which identifies activities eligible for climate finance.

He explained that the Federal Ministry of Finance and the United Nations Development Programme (UNDP) were working on the national taxonomy, while PICTT and its partners were concentrating on translating the framework into practical measures accessible to rural communities.

“Having a national taxonomy is good, but without defining which activity qualifies as adaptive or resilient to climate change, there is no way you can access the financing,” he said.

He also emphasised the need for federal, state and local governments to coordinate their responses to climate-related challenges, particularly flooding, through better infrastructure and effective mitigation measures.

Highlighting PICTT’s achievements, Mohamed pointed to its work in technology transfer, agricultural development and helping entrepreneurs turn research into commercially viable products.

Country Representative of WorldFish in Nigeria, Dr Charles Nyangbe, said climate financing mechanisms must reflect the different environmental challenges confronting farmers across the country.

He explained that northern Nigeria faces drought, while communities in the south contend with flooding and waterlogging. These differences, he said, require tailored adaptation strategies and financing arrangements.

Nyangbe said the proposed taxonomy could help financial institutions develop sustainable lending mechanisms for farmers. He stressed that climate finance operates differently from conventional government budgetary allocations and called for financial instruments that address climate-related risks.

Among the options he advocated were index-based insurance and blended finance to help farmers manage the effects of extreme weather and other climate challenges.

He also urged the government to channel climate funds through commercial banks and other financial institutions, using public money as guarantees to encourage lending to farmers.

“Government should come up with an envelope of funding that is targeted at climate financing, give it to financial institutions, give it to commercial banks so that they can lend,” he said.

Nyangbe disclosed that Nigeria had attracted about $2.5bn in climate-related financing, but said the amount remained significantly below the country’s estimated requirements.

He further called for livestock, fisheries and aquaculture to receive greater attention in climate finance discussions, noting that these sectors were often overshadowed by a focus on crop commodities.

Flooding, he explained, can destroy fish ponds and aquaculture facilities, resulting in substantial financial losses for farmers in the sector.

Managing Director of YAPU Solutions, Christoph Junghleisch, estimated that climate adaptation represented an investment opportunity worth up to $30bn annually for smallholder farmers.

He said YAPU Solutions was working with PICTT to develop a framework that would connect climate adaptation solutions with suitable financing mechanisms.

Junghleisch outlined preliminary plans for a pilot project valued at between $100m and $200m, with the ambition of increasing financing to $1bn during the first expansion phase. He clarified, however, that the figures were targets rather than confirmed funding commitments.

He identified digital technology as a key component of the proposed framework, explaining that it would enable funds reaching smallholder farmers to be documented digitally, with transactions subject to auditing.

“What we are focusing on is smart use of technology, optimisation of processes that enable you to document each and every cent, Naira, that you are basically bringing to the smallholder farmers,” he said.

Junghleisch added that YAPU Solutions was engaging development finance partners, including the Bank of Agriculture and the African Development Fund, while pursuing private-sector investment.

He maintained that appropriate government policies, legislation and regulations would be necessary to support the initiative, noting that public funding alone could not meet the scale of investment required.

The workshop brought together financial institutions, agricultural experts and other stakeholders to validate the national taxonomy, identify appropriate financing instruments and establish an implementation timeline.

According to the organisers, the proposed framework is expected to guide climate finance towards vulnerable farming communities, improve agricultural resilience and protect livelihoods. However, the investment figures outlined remain prospective targets rather than secured funding.

Source: The Guardian