Bringing a vital regional solution to the national post-harvest crisis, His Excellency, Governor Umar A. Namadi, FCA, of Jigawa State, proposed a practical, finance-backed intervention designed to protect the incomes of smallholder farmers.
Speaking to investors, the Governor detailed a plan to implement a state-level Warehouse Receipt System in close partnership with local commercial banks, aiming to eradicate the destructive practice of farmer ‘distress sales.’
The Governor highlighted that the current lack of storage forces farmers to liquidate their harvests immediately after collection, flooding the market and driving prices down. He pointed out that this financial constraint means that “if they sell at that point, they are making a loss.”
The Governor asserted that solving this core economic problem is critical to sustaining food production across the Northern states, as stable income encourages investment in the next planting season.
Jigawa State’s immediate action plan involves leveraging the state-owned warehouses under the Agricultural Supply Company, which will be upgraded and utilized as official collateral points. Under the new model, a farmer can deposit their produce, receive a legally certified warehouse receipt, and then use this receipt to secure a much-needed cash advance from a commercial bank.
The Governor noted the warehouses provide an immediate solution: “We are doing this as a model to provide services for the warehousing system.”
Crucially, to ensure the system is financially accessible to the poorest farmers, the Jigawa State government has committed to subsidizing the interest rate on these advances by at least 50 per cent. This financial cushion removes the high-interest burden and the urgency to sell, allowing the farmer to store their goods securely until market prices naturally improve.
“The farmer will go and collect their goods and pay back the bank the ₦300,000 naira,” the Governor explained, detailing how the farmer realizes a significantly better return. Governor Namadi’s proposal serves as a clear invitation to private sector investors, assuring them that “the opportunity is abundant.”
