Overview of NMFB Agricultural Finance Facility (AFF)
The NMFB Agricultural Finance Facility (AFF) is a strategic loan product offered by NIRSAL Microfinance Bank to support customers involved in agriculture-related businesses. It targets players in key agricultural value chains to help them expand, boost production, and increase food security.
This facility is part of NMFB’s effort to promote agricultural productivity, food sufficiency, and economic empowerment through sustainable and accessible funding.
Who Can Apply?
Eligible applicants must be involved in one or more of the following agricultural activities:
- Crop Farming (e.g. rice, maize, cassava, vegetables, etc.)
- Animal Husbandry (e.g. poultry, cattle rearing, goat farming, piggery, etc.)
- Fish Farming (aquaculture or fish processing)
- Processing of Farm Produce (e.g. rice milling, cassava processing, fruit drying, etc.)
- Farm Machinery Hire Services (tractors, harvesters, planters, etc.)
Key Benefits
- Access to Affordable Credit
Tailored for farmers and agro-entrepreneurs with competitive interest rates. - Interest Drawback Program (IDP)
If you repay your loan on time, you’re eligible for a rebate on interest paid through the CBN Agriculture Credit Guarantee Scheme Fund (ACGSF). The rebate is calculated and paid based on guidelines issued by the Fund.
Loan Features
| Feature | Details |
|---|---|
| Loan Amount | Varies based on project size and repayment capacity. Ranges from ₦250,000 up to ₦10 million+ |
| Tenure | Depends on the type of agriculture (e.g., 6–24 months or more) |
| Interest Rate | ~9% per annum (subject to CBN guidelines), with potential rebate through IDP |
| Repayment Terms | Monthly, quarterly, or seasonal (depending on project cycle) |
| Collateral | May include guarantors, farm assets, or moveable collateral (some facilities may be unsecured for smallholders) |
| Grace Period | May be provided, especially for seasonal agriculture |
Eligibility Requirements
To access the NMFB AFF loan, you must:
- Be an existing or new NMFB customer
- Operate a registered agricultural business or cooperative
- Individual or group applicants are allowed
- CAC registration is a plus but not always mandatory for smallholders
- Be involved in any of the eligible agricultural activities
- Provide evidence of agricultural activity
- Farmland ownership/lease documents, pictures, or community attestation
- Valid means of identification
- National ID, Voter’s Card, Driver’s License, or International Passport
- Bank Verification Number (BVN)
- Recent passport photographs
- Proof of address (utility bill)
- Business or farm plan/proposal (for higher amounts)
Application Process
Step 1: Visit NMFB Branch
- Walk into any nearest NMFB branch to express interest in the AFF loan.
- You can also start your enquiry via their official website or customer service channels.
Step 2: Open a Business or Farmer Account
- If you’re not already a customer, open an account suitable for your farming or agri-business operations.
Step 3: Fill Out the Application Form
- Pick up or download the AFF application form, and fill it carefully with accurate information.
Step 4: Submit Required Documents
- Submit all required documentation, including farm details, ID, business plan (if applicable), and photos.
Step 5: Farm/Business Verification
- NMFB may schedule a site visit to verify your farm, business, or agricultural activity.
Step 6: Loan Assessment and Approval
- Your application will be reviewed based on:
- Capacity to repay
- Viability of your agri-project
- Existing debts (if any)
- Collateral/guarantor (where applicable)
Step 7: Loan Offer and Disbursement
- If approved, you’ll receive a loan offer letter to sign.
- Funds will then be disbursed into your NMFB account.
Conditions & Monitoring
- Funds must be used strictly for the agricultural purpose stated.
- Monitoring teams may check your farm periodically.
- Misuse of funds may lead to loan recall or legal action.
- Early repayment or timely repayment makes you eligible for the Interest Drawback.
Tips for a Successful Application
- Keep farm/business records (inputs, yields, sales, etc.)
- Ensure farm location is accessible and visible for verification.
- Be realistic with your requested amount.
- Maintain good relationship and communication with NMFB.
- Use the loan responsibly to qualify for future funding and interest rebates.
