The Nigerian government, through the International Fund for Agricultural Development – Value Chain Development Programme (FGN/IFAD-VCDP), has signed a renewed Memorandum of Understanding (MoU) with the Development Exchange Centre (DEC) to deepen financial inclusion among smallholder farmers.
The agreement was formalised at DEC’s headquarters in Bauchi State. While the Executive Director of DEC, Mrs Helen Abah, signed on behalf of the microfinance institution, the National Programme Coordinator (NPC) of VCDP, Dr Fatima Aliyu, was represented by the National Rural Finance Officer, Mr Musa Seriki, who signed for the VCDP.
Dr Aliyu explained that the VCDP aims to increase income, enhance food security, and reduce the vulnerability of smallholder farmers, especially women and youth, across nine participating states: Anambra, Benue, Ebonyi, Enugu, Kogi, Nasarawa, Niger, Ogun, and Taraba. The programme currently benefits 135,000 farmers directly and over one million indirectly and is scheduled to run until 2027.
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She noted that the renewed MoU, valid from 2025 to 2026, builds on the initial partnership established in December 2021, which has so far enabled over 2,000 farmers to access loans and other financial services through DEC.
“We are happy with the results from our partnership with DEC. Over 2,000 of our farmers are accessing financial services with DEC,” Dr Aliyu stated.
She expressed optimism about the extended collaboration, which will now include three additional states—Anambra, Ebonyi, and Enugu—thanks to the recent two-year extension of the VCDP by the Federal Government and IFAD.
Highlighting the impact of the partnership, she added: “Since the collaboration began four years ago, the programme has significantly improved financial inclusion, with farmers gaining access to loans, savings, and financial literacy training—all with a commendable repayment rate.”
In her remarks, DEC Executive Director Mrs Helen Abah described IFAD as a longstanding and reliable partner, citing the centre’s previous work with IFAD projects such as RUFIN and CASP.
She confirmed the success of the existing partnership, stating, “With VCDP’s support, we developed five financial products tailored to the rice and cassava value chains and have disbursed over ₦400 million to more than 2,000 beneficiaries.”
Initially covering five states, the new MoU expands operations to three more states following strong performance in the initial phase. Abah stressed the programme’s role in reaching underserved farmers in remote areas, enabling them to access essential financial services.
She also assured that VCDP beneficiaries remain in DEC’s database and would continue to receive support even after the programme ends.
“We are strategising and putting systems in place to ensure sustainability, so that even after the VCDP exits, its beneficiaries will continue to access financial services through our institution,” she concluded.
