Nigerian Farmers Accuse Banks of Diverting Agric Funds to Real Estate

Nigeria is currently facing a serious conversation about its food future. At the recent 2026 Agriculture and Agro-Allied Summit in Lagos, experts and farmers gathered to discuss why the country still struggles to feed itself despite having massive amounts of fertile land. The talk took a sharp turn when Prince Wale Oyekoya, a prominent farm owner and former industry chairman, accused commercial banks of a major betrayal.

The Accusation

Prince Oyekoya claimed that banks are not putting money where it belongs. He alleged that funds specifically meant to help farmers grow food are being diverted into the real estate sector. According to him, this shift has created a massive financing crisis for people who actually work the soil.

Oyekoya dismissed the common excuse that banks do not have enough data to find "real" farmers. He pointed out that the government already has lists of registered farmers and cooperatives. In his view, the problem is not a lack of info but a lack of honesty and commitment from financial institutions.

The Banks Defend Their Stance

Not everyone agreed with this harsh view. Utomi Ezinwa, a manager at Union Bank, argued that the issue is more about risk than a lack of will. He explained that many small farmers work alone in "fragmented" systems. This makes it hard for banks to feel safe lending money.

Ezinwa noted that banks are much more likely to give loans when farmers work in groups. If a group of farmers has a guaranteed buyer for their crops, the risk goes down. He also admitted that the high cost of interest on these loans is a major hurdle that still needs to be solved.

A Growing Risk to National Security

The summit also heard from Kola Masha, the head of Babban Gona. He painted a more urgent picture. Nigeria has about 85 million hectares of land that could be farmed, yet millions of farmers cannot get the money they need for seeds or tools.

Masha warned that this is not just about food; it is about safety. He noted that:

• Insecurity is forcing farmers to abandon their land in the North.

• Climate change is making harvests unpredictable.

• Youth unemployment is rising at an alarming rate.

He asked a haunting question: if 20 million unemployed people helped start past insurgencies, what will happen when 80 million more young people enter the workforce with no jobs in sight?

The Path Forward

Despite the tension, the summit highlighted a clear solution. If agriculture becomes profitable, young people will join the sector. Prince Abimbola Olashore, President of the Nigerian-British Chamber of Commerce, stated that while things like poor roads and lack of machines are big problems, they are also opportunities for new investments.

For Nigeria to be food secure, the money must reach the hands of the people planting the seeds. Whether through better policy or stricter rules for banks, the consensus was clear: the time for diverting funds must end if the country is to survive.