News in brief:
– SeedFi partners with Winich Farms to offer loans to Nigerian farmers using stored produce as collateral.
– The initiative targets financial inclusion, starting with 700 farmers and aiming for national expansion.
SeedFi, a financial technology company, recently partnered with Winich Farms to launch a new produce-collateralised loan scheme for farmers, aimed at solving financial exclusion in Nigeria’s agriculture sector.
The initiative allows farmers to use their harvested and stored produce as collateral to access flexible loans, breaking away from the traditional requirement of formal documentation or fixed assets.
Addressing financial barriers in agriculture
For decades, Nigerian farmers, particularly those in rural communities, have struggled to access formal credit due to a lack of collateral, verifiable credit history, and limited access to banks.
This new financing model aims to eliminate financial exclusion for Nigerian farmers who, despite their crucial role in feeding millions and powering rural economies, lack access to finance solutions.
“Farmers are the foundation of our economy, and they deserve access to the same financial opportunities as any other sector,” said Samaila Dogara, co-founder of SeedFi. “Our partnership with Winich Farms ensures that their hard work finally counts where it matters most—towards their creditworthiness and future growth.”
How SeedFi loans to Nigerian farmers work
Under the arrangement, farmers can use their harvested produce stored in Winich Farms’ certified warehouses as collateral for securing loans from SeedFi. This offers an alternative to the traditional loan process of using landed properties or high-value possessions as collateral for loans. The process eliminates many of the bureaucratic bottlenecks common in the banking sector.
“Farmers can now leverage their stored produce to access financing without traditional barriers or restrictions,” said Attai Riches, CEO of Winich Farms. “The funds can be used at the farmer’s discretion.”
The partnership is launching with a pilot phase that will serve over 700 farmers, with plans to scale the program across the country.
Implications for rural farming
Experts say this model could help improve productivity, stabilise income flows, and empower rural farmers who previously depended on informal and often exploitative lending channels.
By recognising stored crops as valuable assets, the partnership between SeedFi and Winich Farms could reshape how smallholder farmers access capital, marking a significant shift in agri-finance innovation in Nigeria.
