Heifer International facilitates access to innovative finance for tomato farmers in Badagry

Heifer International Nigeria, a global non-profit organisation, has facilitated access to innovative finance, guaranteed fair market and insurance for smallholder tomato farmers in Dadi Louis and Topo communities in Badagry, Lagos State.

The incentives to the farmers are being achieved through linkages with private sector partners offering innovative finance and premium markets and implemented through off-take and loan agreements. The multi-partners initiative would enable the tomato farmers to operate at higher capacity and improve their livelihood by increasing their profit margins and closing their income gaps.

At an agreement signing ceremony on Friday 31st March 2023, participating smallholder tomato farmers under Itesiwaju Farmers’ Cooperative Society based in Louis Community, Badagry signed an agreement with Cosmic Roots Concepts Limited (CRCL) that will make accessible finance available to farmers with drastic reduction in transaction cost from the current 50% to a 9% interest rate per season starting with a reduction from 50% to 15% during the pilot. The three-way agreement will also involves Soupah Farm-en-Market Limited (SFEM) who will off-take from the farmers at a fair market price.

The Country Director, Heifer Nigeria, Rufus Idris, explained that “Supporting smallholder farmers to overcome access to capital and market challenges involves building collaboration with a wide range of stakeholders including investors and financiers, input distributors, insurance companies, business development service providers, agricultural research institutions, the donor community and government agencies.”

“This is a sustainable locally-led development (SLLD) project, with Heifer only acting as a facilitator and convener,” he added.

Heifer Nigeria’s Signature Programme Technical Lead, Lekan Tobe, said at the ceremony that “Tomato farmers that use to repay lenders a whopping of 50% on loan per season will now pay back only 15% during the pilot phase, and reduce to 9% in the subsequent farming seasons.”

Tobe further pointed out that “The off-take deal with SFEM Limited guarantees prompt loan repayment and increased profits for the farmers.

“To reduce market and post market losses, the off-taker will also introduce and develop farmers’ capacity to leverage innovative ways of storing and transporting tomatoes using crates.”

According to the Strategy Manager of Cosmic Roots Concepts Limited, Yemi Omire, they are excited to invest in crop production and also to make possible input and cash financing at friendly conditions that will encourage the benefiting farmers to improve their farming practices, adopt innovation and increase their production outputs.

The founder and CEO of Soupah Farm-en-Market Limited, Ifeoluwa Olatayo, explained at the event that the off-take agreement ensures that her company off-takes tomato farm yields from the farmers right on the farm.

According to her “the initiative would enable the farmers to adopt technology as a core component of their business”. SFEM would also be training the farmers on how to use our simple Agri-Tech Connect App to schedule off-take of their produce, track sales quantity and records and request other services. Ultimately, the farmers’ perspective and approach to problem-solving will change for the better.

President of the Itesiwaju Farmers’ Cooperative Society, Hafiz Tiamiyu Adigun, said the farmers were excited about the collaboration with Heifer International, assuring that “we remain committed to fulfilling the terms of the agreement so that we can attract more support that will help us to increase our earnings and contribute our quota to transforming Nigeria’s agricultural sector.”

A female farmer, Rofiat Ibrahim, benefitting from the project explained that “I use to repay lenders the sum of NGN750,000 in return for a NGN500,000 loan but through this project, I will now pay back only NGN575,000 during the first phase and only NGN545,000 in the coming farming seasons. This is a savings of NGN205,000 that will help me cater better for my family.”

Heifer International has declared its commitment to eradicating poverty and hunger by supporting farmers with capital and market linkages to help them achieve sustainable living income.

This is as the organisation through its Naija Unlock Signature Programmes in Nigeria is unlocking Nigeria’s potential for food self-sufficiency, increasing local production to meet rising local demands, while closing the living income gap for families in the tomato, rice, and poultry value chains.

According to a statement, since 1944, Heifer International has worked with more than 39 million people around the world to end hunger and poverty in a sustainable way.

“Working with rural communities across Africa for 47 years, Heifer International supports farmers and local food producers to strengthen local economies and build secure livelihoods that provide a living income. For information, visit www.heifer.org”