In a significant step towards improving agricultural financing in Nigeria, fintech company SeedFi has teamed up with Winich Farms to introduce a groundbreaking initiative that allows farmers to access loans using their stored produce as collateral. This new model aims to bridge the financial gap in Nigeria’s farming sector by enabling smallholder farmers—who are often locked out of traditional banking systems—to gain credit through the value of their harvests.
Addressing the Credit Gap in Agriculture
For decades, Nigeria’s agricultural sector has served as the bedrock of the rural economy, providing livelihoods for millions of households and food for the nation. Yet, despite its importance, smallholder farmers have largely remained on the margins of the formal financial system. A lack of conventional collateral, credit history, and access to banking infrastructure has left many of them financially excluded.
SeedFi’s co-founder, Samaila Dogara, emphasized the importance of integrating these farmers into the country’s economic mainstream. “Farmers are the foundation of our economy, and they deserve access to the same financial opportunities as any other sector,” Dogara said. “Our partnership with Winich Farms ensures that their hard work finally counts where it matters most—towards their creditworthiness and future growth.”
A New Model for Rural Finance
This partnership enables farmers to store their harvested produce in Winich-operated warehouses, where the stored crops are then used as collateral for flexible, low-barrier loans. By removing the need for formal documents, land titles, or fixed assets, the initiative provides an inclusive and innovative solution to the long-standing issue of limited access to agricultural finance.
According to Attai Riches, CEO of Winich Farms, the loan scheme was developed with farmers’ realities in mind. “To facilitate access to finance for producers, Winich has partnered with SeedFi to roll out produce-collateralised loans. Farmers can now leverage their stored produce to access financing without traditional barriers or restrictions. The funds can be used at the farmer’s discretion,” Riches noted.
Unlike conventional loan systems, which often impose rigid requirements, this model offers farmers the autonomy to determine how to utilize the funds—whether for purchasing inputs, expanding operations, or covering pressing personal expenses.
Launch and Future Expansion
The pilot phase of the initiative is set to serve over 700 farmers across various agricultural zones, with the goal of scaling the model to reach thousands more. These early adopters will be the first to benefit from the produce-backed credit mechanism, which provides much-needed liquidity while simultaneously supporting better post-harvest storage practices.
Winich Farms’ network of warehouses will play a crucial role in the system. These storage centers not only safeguard produce but also provide an auditable way to assess the value of collateral, ensuring transparency and trust in the loan process.
Implications for Nigeria’s Agricultural Development
This initiative arrives at a critical time for Nigerian agriculture. With global food insecurity on the rise and national efforts intensifying to diversify the economy, empowering farmers is no longer just a developmental goal—it’s an economic necessity.
By providing financial tools that reflect the real-world assets of farmers—namely, their produce—SeedFi and Winich Farms are creating a practical pathway toward inclusive rural finance. This approach could also encourage the formalization of agricultural value chains, as farmers participating in such schemes may be more likely to engage with regulated market systems and improve record-keeping.
Moreover, the introduction of produce-collateralised loans has the potential to redefine what constitutes bankable collateral in the Nigerian context. Instead of viewing farmland or machinery as the only acceptable forms of security, this model repositions crops—perishable though they may be—as a viable financial asset.
Towards a More Inclusive Agricultural Ecosystem
One of the broader implications of this model is its potential to inspire similar partnerships in the sector. As fintech continues to disrupt traditional finance, collaborations between agritech and financial service providers could expand the reach of inclusive products. In doing so, they would not only help farmers but also strengthen Nigeria’s food systems, rural employment, and domestic food security.
Additionally, successful adoption of this model could prompt policy changes, encouraging regulatory bodies to formally recognize non-traditional forms of collateral in agricultural lending frameworks.
As Dogara and Riches have both highlighted, this initiative seeks to redefine agricultural finance by focusing on trust, innovation, and farmer empowerment. If scaled effectively, produce-backed lending could become a cornerstone in the next phase of Nigeria’s agricultural and economic development.
Conclusion
The SeedFi-Winich Farms partnership represents more than just a novel financial product—it is a bold intervention aimed at transforming how Nigerian farmers access capital. By leveraging stored crops as collateral, this initiative promises to uplift rural communities, fuel economic productivity, and pave the way for a more inclusive and sustainable agricultural sector. With an initial target of 700 farmers and nationwide ambitions, this produce-collateralised loan model could be the key to unlocking long-term prosperity in Nigeria’s rural heartlands.
