The House of Representatives has called on the Federal Government to urgently facilitate easy access to short-term loans for cassava farmers, a move designed to revitalize the agricultural sector and diversify Nigeria’s economy. This legislative resolution is a direct push to remove the financial hurdles preventing the country, which is the world’s largest cassava producer, from maximizing the crop’s vast commercial potential.
The House specifically directed the Central Bank of Nigeria (CBN), the Bank of Agriculture (BoA), and the Bank of Industry (BoI) to streamline lending processes in favor of cassava growers. In an accompanying motion, sponsored by Hon. Canice Moore Chukwuugozie Nwachhukwu, the lawmakers stressed that inadequate and inaccessible financing is the chief constraint facing millions of smallholder farmers. The resolution also demanded the immediate reconstitution of the defunct Presidential Committee on the Cassava Initiative Programme of 2002, signaling a serious intent to revisit and implement a comprehensive national strategy for the crop.
The push for accessible finance is rooted in a critical economic imperative: leveraging agriculture to reduce Nigeria’s reliance on oil revenue. Cassava is a powerhouse within the rural economy, contributing an estimated 45% of Nigeria’s agricultural GDP. However, its value chain is severely underdeveloped. The current system is dominated by small-scale farmers who operate largely at a subsistence level, struggling to afford basic inputs like improved stems, fertilizers, and machinery due to a lack of collateral and high interest rates from formal lenders.
This financial constraint leads to low yields and, more critically, massive post-harvest losses. Fresh cassava roots are highly perishable, spoiling often within 48 hours. Without timely access to capital for processing and storage infrastructure, a significant portion of the harvest is wasted, undercutting farmer income and national food security efforts.
The real economic prize lies in industrialization. Nigeria has a massive demand deficit for cassava derivatives. Local industries, including bakeries and manufacturing plants, require hundreds of thousands of metric tonnes of High-Quality Cassava Flour (HQCF) and industrial starch annually, a demand the country is currently unable to meet. This supply gap forces manufacturers to import, resulting in capital flight and foreign exchange depletion.
By ensuring short-term, affordable credit, the government would enable farmers and small processors to invest in crucial processing and packaging technology. This capital injection would allow them to convert raw tubers into more stable, higher-value products for both domestic industrial use and lucrative export markets. Legislators believe that unlocking the cassava value chain could transform the sector from a low-profit venture into a significant source of foreign exchange earnings and a massive engine for job creation, fulfilling the government’s promise of meaningful economic diversification.
