A former Chairman of the Agriculture and Non-Oil Group of the Lagos Chamber of Commerce and Industry, Prince Wale Oyekoya, has accused some banks of undermining agricultural development by allegedly redirecting funds meant for farmers into real estate investments.
Oyekoya, who also serves as Managing Director and Chief Executive Officer of Bama Farms Limited, made the allegation during a panel session at the 2026 Agriculture and Agro-Allied Summit in Lagos, organised by the Nigerian-British Chamber of Commerce. The summit focused on the theme: “Ensuring Food Security in Nigeria: Innovations, Investments and Policy for a Resilient Future”.
He did not hold back in expressing frustration over what he described as systemic failures in agricultural financing. “I believe financial institutions are mostly the problem farmers have. I’m a living witness and I have so many experiences with them that when some of these funds are being given to the banks to be given to the farmers, most of them divert the funds to real estate,” he alleged.
Oyekoya argued that Nigeria already has sufficient farmer data within government systems to support targeted lending, stressing that cooperatives and clusters remain the official entry point for identifying legitimate farmers. “Yes, there’s always data when you go to the ministries. When you go to any government establishment, that is why they say they deal with cooperatives and clusters. So every farmer, every stakeholder in farming in any state must be registered,” he said.
Banking sector pushes back, cites structural risks
Representing the financial sector, Manager of Agribusiness and Non-Oil Export at Union Bank, Mr. Utomi Ezinwa, offered a different perspective, arguing that lending constraints are largely driven by risk rather than neglect.
He explained that fragmented smallholder systems make direct financing difficult, urging farmers to adopt cooperative models and structured market linkages. “Some smallholder farmers can’t work alone. It is important that they work in association and link up to an anchor. When the market is guaranteed, we check the anchor himself, does he have capacity, does he have track record? There’s nothing stopping us from funding smallholder farmers,” he said.
Ezinwa also highlighted the cost of credit as a major barrier to agricultural productivity, adding: “One of the major challenges apart from financing itself is the cost of the financing and we need to talk about it.”
Experts warn of worsening food insecurity and youth risks
Delivering a keynote perspective, Founder and Managing Director of Babban Gona, Mr. Kola Masha, painted a broader picture of Nigeria’s agricultural and demographic pressures.
Through his organisation Babban Gona, Masha noted that Nigeria has vast agricultural potential but continues to struggle with systemic exclusion of smallholder farmers from finance, markets, and modern technology.
“A typical smallholder farmer who is the backbone of the agricultural sector has no access to loans to buy the quantity and quality of agricultural products they need to boost productivity,” he said.
He warned that insecurity and climate shocks are already eroding agricultural output in parts of Northern Nigeria, mentioning states such as Zamfara, Sokoto, Katsina, Borno, Adamawa and Yobe as particularly affected. “Persistent insecurity disrupts agriculture, causing land abandonment and reduced yields,” he said.
Masha also raised concern about Nigeria’s demographic pressures, pointing to the country’s youthful population and future employment challenges. “With the median age of 18, over 80 million more young Nigerians will seek to enter the workforce in the next 20 years. If 20 million triggered three insurgencies, what will 80 million unleash?” he queried.
Despite the concerns, he argued that agriculture can absorb youth employment if properly structured and supported. He said Babban Gona has, since 2012, supported over 500,000 farmers and injected more than $250 million into rural economies while maintaining repayment rates above 99 per cent. “Nigerian youth are exceptionally smart individuals and they will follow where they see opportunity,” he said.
Chamber of Commerce calls for reforms and innovation
In his welcome address, President and Chairman of Council of the Nigerian-British Chamber of Commerce, Prince Abimbola Olashore, reaffirmed agriculture’s central role in economic stability and national security. Nigerian-British Chamber of Commerce
He identified long-standing structural challenges including poor infrastructure, climate variability, post-harvest losses, limited mechanisation, and weak access to finance. However, he stressed that these challenges also present opportunities for policy reforms, investment inflows, and innovation capable of transforming Nigeria’s agricultural sector and boosting agro-export potential.
Broader concerns over agricultural financing systems
The discussions at the summit reflect a wider national debate: whether Nigeria’s agricultural financing architecture is truly reaching smallholder farmers or being diluted by systemic inefficiencies and competing investment priorities.
While accusations of fund diversion remain contested, the consensus among stakeholders is that without stronger financing structures, improved accountability, and better coordination between banks, government, and private sector actors, Nigeria’s food security ambitions may remain difficult to achieve.