Bridging the Gap: How BDS Strengthens the Handshake Between Investors and Agri-SMEs
By Jerry Adesewo
As Nigeria works to transform its agricultural sector into a sustainable economic powerhouse, one persistent challenge remains: the disconnect between policy, finance, and the farmers who till the soil. This gap was brought into sharper focus during recent discussions among agricultural stakeholders in Abuja, at the annual national matchmaking event organised by SMEDAN, AGRA, Kaduna Business School and other stakeholders, where the call for policy consistency and institutional sustainability echoed loud and clear.
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Among those lending voice to the issue was the former Minister of Women and Social Affairs Development, Hajiya Aisha Abubakar, an agricultural stakeholder who has seen the sector’s highs and lows over several administrations. Her message was simple yet profound.
“One of the most important things farmers need,” she said, “is a sustainable policy that continues from one government to another. Agriculture is seasonal, but politics is not. When a government leaves, the farm doesn’t stop. We need continuity of agricultural policies.”
That sentiment captures a truth too often ignored: agricultural development does not fit neatly into four-year political cycles. Seeds planted today may only bear fruit in the next administration, making policy sustainability not just desirable but necessary.
Beyond Bureaucracy: Smarter Government Interventions
Dr. Sani of the Kaduna Business School, also made a strong case for smarter, more intentional funding systems.
“Government interventions should be strategic,” he argued. “There are already institutions with the capacity to loan to farmers and monitor them effectively. Instead of routing everything through ministries and agencies, the government should focus on monitoring and evaluation—making sure accurate data is collected and funds are used as intended.”
This approach, he noted, would reduce wastage, strengthen accountability, and ensure that interventions actually reach those who need them most.
The Missing Link: Business Development Services (BDS)
That bridge between farmers and finance—the missing handshake—may well lie in a new generation of Business Development Service (BDS) providers. BDS are professional entities that help small and medium enterprises (SMEs) become investment-ready through business training, technical support, and access to finance.
In agriculture, their role is even more critical. They connect farmers, cooperatives, and agri-SMEs to investors, financial institutions, and markets. And now, thanks to new innovation under the AGRA-supported System Strengthening Programme for Agricultural BDS Providers (AG-BDSP), they’re getting a major upgrade.
According to Dr. Godswill Aguiyi, one of the project directors under the consortium, the initiative—funded by the Alliance for a Green Revolution in Africa (AGRA)—focuses on strengthening the systems that support agribusiness growth.
“The programme covers three focal states—Kaduna, Niger, and Nasarawa,” Rector, Kaduna Business School, Dr. Dahiru Sani, explained. “Our role at KBS is to ensure that policies and interventions spread equally across these states and beyond. We’re working with state ministries, entrepreneurs, and agri-BDS providers, while developing a new curriculum called BDS4Agri.”
BDS4Agri: A New Model for Agri-Support
The BDS4Agri curriculum is designed to create a new cadre of professionals who understand both the business of agriculture and the mechanics of finance. These experts are trained to provide end-to-end support—helping farmers improve productivity, access funding, and build sustainable enterprises.
“We’re creating specialised people who understand agriculture and can guide farmers through the entire value chain,” Dr. Valentino Heavens, BDSP Ecosystem Manager, said. “From production to processing to financing, these BDS professionals act as the handshake between investors and agri-SMEs.”
In essence, the BDS4Agri programme bridges two worlds: the financial sector, which seeks viable investment opportunities, and the agricultural sector, which needs structured, scalable business models to attract such investments.
SMEDAN’s Role in Building the Bridge
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), through its ongoing institutional reforms and capacity-building programmes, has also become a crucial player in strengthening this handshake between investors and agri-entrepreneurs.
According to Dr. Charles Odii, the Director-General of SMEDAN, speaking through Dr. Funto Babarinde, the agency is “deliberately repositioning BDS providers as catalysts for small business growth, especially in rural and agricultural sectors.”
“Our collaboration with AGRA and Kaduna Business School,” he said, “is part of a larger national framework to make Nigerian SMEs—particularly agri-SMEs—investment-ready. The more structured our BDS ecosystem becomes, the easier it is for investors to find credible partners across the value chain.”
Dr. Odii emphasized that SMEDAN is also working with financial institutions to harmonize data, improve access to finance, and reduce duplication of support efforts across ministries and development agencies.
Why This Matters
Agriculture contributes about 24% to Nigeria’s GDP and employs over 36% of the workforce, yet the sector remains underfinanced and underperforming. One major reason is the perceived risk of lending to farmers and agri-businesses—a challenge compounded by poor data, weak business systems, and lack of professional support structures.
By introducing trained BDS4Agri professionals who can de-risk investments and mentor agri-entrepreneurs, programmes like this offer a sustainable path forward. They also ensure that climate-smart, data-driven practices become mainstream, not pilot projects that die once donor funding ends.
The Bigger Picture: Systemic Change, Not Stopgap Projects
The AGRA-supported initiative signals a shift from one-off interventions to systemic capacity building. It recognizes that while farmers grow crops, institutions must grow frameworks—and that both are needed for true agricultural transformation.
Hajiya Aisha Abubakar’s call for policy continuity and Dr.Dahiru’s advocacy for BDS empowerment converge on a single point: the need for structure that lasts beyond electoral cycles and beyond donor grants.
As Dr. Dahiru aptly summarized, “It’s not just about giving farmers money—it’s about giving them a system that helps them succeed,” and further explained that the services of BDSPs are covered by a multi-donor cost sharing facility.
The Future is in the Handshake
The story of Nigeria’s agriculture is evolving. From subsistence to sustainability, from politics to policy, and from aid to accountability. But for this transformation to hold, the handshake between farmers and financiers must be strong, structured, and sustained.
With the emergence of BDS4Agri and the commitment of institutions like Kaduna Business School and AGRA, Nigeria may finally be learning that building systems—not slogans—is what turns seeds into harvests and potential into prosperity.