How Nigerian Farmers Dey Suffer as Money No Dey Flow

No be small wahala o! Naija farmers dey face serious challenge as dem no fit access loan wey go help dem grow their business.

According to Abiola Jimoh, wey be CEO of XchangeBox, the matter no be say government no dey provide money, but the way dem dey distribute am no too correct.

Everybody sabi say traditional banks go first ask for collateral wey plenty farmers no fit provide. Dem dey look for formal records wey e get as dem don dey operate like say na only government work dey pay bill. But this one no dey work for farmers wey dey hustle on ground. Na why dem dey go dey borrow money from informal lenders wey go charge dem high interest rates.

Wetin be the gist of payment delays? E be like say na dis one dey kill small businesses softly. Farmers dey supply their produce, but dem go dey wait for weeks or even months before dem go see their pay. During dis time, dem still need moni to take care of transport and other running costs. If no money dey to buy inputs, how far dem wan go?

Yah, delayed payments no dey just affect farmers alone, e dey affect everybody wey dey for trade chain. E dey slow down economy, no be lie. Money no dey circulate well, and everything dey jam.

And here come XchangeBox wey dey tackle dis issue. Wetin dem dey do? Instead of relying on old school credit scores, dem dey use actual business activity like purchase orders and delivery records to determine how fit dem fit finance farmers and traders.

For XchangeBox, na wetin you dey do be the main thing. Dem dey partner with farmers and cooperatives to make sure real trade dey happen, and as dem dey trade, dem dey fit access finance to grow.

And o! Women no dey left behind, as dem dey play major role for informal trade and agriculture. XchangeBox don create special loan product called “Kidashi”, wey be Hausa word wey mean “women supporting each other”. Dis product dey support women traders wey sabi how to gather money for their business effectively.

But no be only women dem dey support. As inflation dey rise, businesses dey find am hard to survive. Instead of folding arms, dem go dey reduce operation or carry expensive loans wey no go last. E no go work like dat.

XchangeBox dey use tech help traders maintain their cash flow despite wahala for the economy. Dem also dey collaborate with government and development partners to create structured financial interventions wey go fit help for agri-trade.

However, una listen o, dis limited internet access dey make am hard for fintechs to reach rural areas. That one dey complicate everything because no light, no internet dey affect transactions and data collection. XchangeBox dey look for ways to merge digital platforms with physical means to reach everyone across Nigeria.

As dem look ahead, dem dey plan to expand and support millions of farmers and MSMEs with better finance solutions. E go ensure say dem no go struggle for cash flow again.

Now na small businesses like XchangeBox wey fit change Nigeria’s financial landscape completely as dem continue to innovate and adjust to meet the needs of farmers and traders on ground. Make we dey watch how their story go unfold!