First Trustees advocates stronger governance for farm financing

The Managing Director/Chief Executive Officer of First Trustees Limited, Ereifemi Akeredolu, has said sustainable growth in Nigeria’s agricultural sector requires more than funding, stressing the need for clear responsibilities, sound governance and proper risk allocation.

Akeredolu stated this at the maiden Commercial Trust Colloquium organised by First Trustees Limited, a subsidiary of FirstHoldCo Plc, in Lagos, according to a statement on Friday.

The colloquium, themed “Beyond Intervention Funds: Building Sustainable Financing Models for Nigerian Agriculture,” brought together stakeholders from the public and private sectors to discuss financing options for the agricultural sector.

She said the availability of capital alone was not sufficient to guarantee sustainable growth, noting that investors were more likely to commit funds when risks were properly understood, and the structures surrounding transactions were reliable.

“In my work across trust and financial services, I have seen that sustainable growth is rarely the result of funding alone. Capital moves more confidently when responsibilities are clear, risks are properly understood, governance is sound, and all parties can rely on the structures around a transaction,” Akeredolu said.

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According to her, trust institutions have a role to play in establishing accountability, protecting the interests of parties involved in transactions and ensuring that agreed obligations are fulfilled. She said such functions could help create structures capable of supporting long-term investment in agriculture.

The discussions at the colloquium focused on financing models beyond government intervention funds, with participants examining issues around agricultural value chains, risk allocation, productivity and private-sector investment.

The stakeholders also considered ways of developing financing structures that could attract long-term private capital to viable businesses across the agricultural value chain.

Agriculture remains a major contributor to Nigeria’s food supply, employment and industrial activities, while access to sustainable financing remains a key challenge for businesses operating across the sector.

The event also featured the unveiling of an upgraded digital platform by First Trustees, which the company said would digitise some of its trust-service processes and reduce paperwork and documentation requirements.