News in brief:
– The Federal Ministry of Agriculture officials accuse the Finance Ministry of undermining Nigeria’s food security by favouring AFEX for $310 million in agricultural projects without transparency.
– They warned that this move centralises control, sidelines states and smallholder farmers, and risks repeating past failures like the ABP.
Concerned officials within the Federal Ministry of Agriculture have accused the Ministry of Finance of overreach and interference, warning that such actions threaten Nigeria’s agricultural progress and food security goals.
In a letter to human rights lawyer Femi Falana (SAN), the insiders criticised the Finance Ministry’s alleged endorsement of AFEX Commodities Exchange as the sole implementing partner for $310 million worth of agriculture projects backed by Japan’s JCIA and the African Development Bank (AfDB).
They claimed this move undermines the successful decentralised Nigeria Agro-Pocket Project, which reportedly benefited nearly one million farmers and over 1,000 agro-dealers across the country.
The whistleblowers described the new AFEX-led model as monopolistic, mirroring the troubled Anchor Borrowers’ Programme (ABP), where AFEX is facing legal and financial scrutiny over mismanaged funds and debt.
“AFEX is undergoing legal and regulatory scrutiny, including ₦169.27 billion disbursed under the CBN’s Anchor Borrowers Program; legal action by GTBank over ₦17.8 billion in outstanding debts; federal High Court orders to probe AFEX’s accounts in 28 banks, and allegations of fund misappropriation and contempt of court orders by top AFEX officials,” the letter alleged.
They raised concerns over centralisation, exclusion of state ministries, and over ₦50 billion allegedly allocated to administrative costs instead of farmer support.
“AFEX, in collaboration with Jide Arowosafe and NADF, proposed an alternative ‘Improved Agro-Pocket’ model which was rejected by the Vice President due to its narrow design and lack of stakeholder inclusion,” the letter added. “Despite resistance, AFEX and Arowosafe gained the support of the Honourable Minister of Finance, Mr. Wale Edun. A de facto coordination office was established in the Finance Ministry.”
They mentioned that the agencies in the revised plan include the NALDA, Bank of Agriculture, and NADF, all of which lack necessary infrastructure. Also, AFEX is still the exclusive operational and digital partner.
The contrast, the letter pointed at, is that Ministry of Agriculture’s current initiative targets vulnerable farmers and SME agro-dealers, utilising subsidies efficiently for sustainability. Meanwhile, this initiative encourages monopoly.
According to the letter, the Finance Ministry is also backing AFEX to lead government-backed grain imports without transparent bidding, a move they say could distort local markets and harm national food security.
They also expressed fear that the company could divert national agricultural grants into debt repayment and private interests.
The critics urged authorities to review the implementation plan, protect the Agro-Pocket initiative, and hold politically exposed actors accountable.
The letter calls for donor agencies to respect due process, while warning that continued interference could derail agricultural reforms under President Tinubu’s administration.
“The Ministry of Finance should refocus on its core mandate, facilitating funding and economic coordination, not direct implementation or control of sectoral projects,” they cautioned.
