The Dutch-funded HortiNigeria program has announced a policy milestone with the Federal Government's approval of a 75 per cent Credit Risk Guarantee (CRG) for tomato crate financing. The measure is expected to unlock more than US$340,000 in special intervention funding for Nigeria's horticulture sector.
Mohamed Selassie Idris, Country Representative of the International Fertiliser Development Centre (IFDC) and Program Director of HortiNigeria, shared the update during the 47th Regular Meeting of the National Council on Agriculture and Food Security (NCAFS) at Murtala Square in Kaduna.
He stated that the increase in CRG coverage from 30 to 75 per cent within a year will improve lender confidence, widen access to credit for agribusinesses, and support the reduction of post-harvest losses in the tomato value chain.
"We are happy to report that the Credit Risk Guarantee for the Tomato Plastic Crate Association, which was at 30 per cent, was raised to 50 per cent last year, and now, with NIRSAL's support, it has reached 75 per cent," Idris said. "This development will strengthen the supply chain and enable more farmers and crate producers to access financing."
The enhanced CRG coverage is part of ongoing efforts to improve post-harvest handling and logistics in Nigeria's tomato industry. Plastic crate systems have been introduced as a replacement for traditional raffia baskets to reduce damage and spoilage during transport from farm to market. The new guarantee framework is expected to make it easier for farmers, cooperatives, and crate manufacturers to access credit for expanding these systems through banks participating in the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).
HortiNigeria, which is financed by the Netherlands government and implemented by IFDC and its partners, works to strengthen vegetable value chains in Nigeria through improved access to finance, climate-smart production practices, and market integration. The program's intervention in tomato crate financing forms part of its strategy to promote efficient post-harvest management and enhance value addition in key horticultural commodities.
By increasing risk coverage for lenders, the government aims to stimulate more private investment in crate manufacturing and distribution, ultimately reducing post-harvest losses and improving supply chain efficiency across tomato-producing regions.
Source: Business Day
