Agricultural Loan, A Lifeline for Janet
From Crisis to Survival
In 2011, during the post-election crisis in northern Nigeria, Janet Daudu relocated with a few chickens from the Tudun Fulani community in Bauchi State to Jos, Plateau State. She had recently lost 9,000 chickens to bird flu, and without sufficient funds, she struggled to buy feed and veterinary drugs to sustain the remaining flock. The business she had invested in her time, energy, and capital suffered a major setback. With no insurance coverage, there was no way to recover her losses or restore her livelihood.
Janet struggled to keep her poultry business afloat until 2017, when she was introduced to Gowans Microfinance Bank (MfB) Limited by the Chairman of the Plateau State Poultry Association of Nigeria, who also served as her guarantor. Recognizing her determination and potential, the bank provided her with a NGN 500,000 loan at a 4% interest rate flat per month. However, Janet found it difficult to repay on time because the loan was disbursed under the bank’s generic agricultural lending approach, which did not fully reflect the specific realities of poultry production. Still, even with delays, the loan became a lifeline - helping her rebuild gradually and regain stability.
“Gowans has helped me a lot for many years. I had over 9,000 chickens when bird flu attacked the birds and cleared out my entire farm, but Gowans were there for me. They gave me a loan of 500,000 naira. Even with the loan, it was still difficult to restart and repay the loan. It was very difficult and I considered selling some plots of my land to pay back but thank God I did not,” said Janet Daudu.
A Turning Point in Agricultural Financing
In 2023, Janet returned to Gowans MfB to request a new loan to expand her business. After conducting a cash flow analysis, the bank approved a NGN 1,000,000 loan at a 4% reducing-balance interest rate with a business cycle–aligned repayment structure. This decision followed capacity building on Agricultural Value Chain Financing and Business Model Analysis by the Global Project Promotion of Agricultural Finance for Agri-based Enterprises in Rural Areas in Nigeria (GP AgFin), a project implemented by GIZ on behalf of the German Government. GP AgFin’s support enabled the bank to develop five financial products tailored to various value chains, including poultry.
With the NGN 1,000,000 loan, Janet increased her flock by 500 additional chickens and purchased feed and drugs. In the months that followed, she repaid the loan and went on to access NGN 1.5 million and NGN 2 million loans. These loans enabled her to grow her poultry business to 2,500 chickens and plan for the addition of 4,000 more. She also built two new pens, employed seven staff, and funded her seven children’s school fees - two of whom have now graduated from private universities in Nigeria. Her poultry farm currently produces up to 70 crates of eggs per day, generating revenue of about NGN 350,000 (approximately €233) daily.
“After much struggle and by God’s grace, I was able to repay the loan. Sometime later, I collected another loan of 1,000,000 naira and started again with 500 birds.”
Strengthening the System Behind the Success
This success story is closely linked to the support delivered through the GP AgFin project, which strengthened Gowans Microfinance Bank’s capacity to serve customers like Janet. GP AgFin trained 10 staff of Gowans MfB on Business Model Analysis, Agricultural Value Chain Financing and Product Development (AVCF), and Inclusive Financial Product Design for Women Agripreneurs. The project also conducted business model analysis for different agricultural value chains, including poultry. The capacity-building workshops enabled Gowans MfB to redesign its agricultural lending product into five value chain-specific financial products.
As a result, Gowans MfB now practices group lending, applies customer cash flow analysis, structures repayment schedules based on farmers’ value chains, and provides training to farmers on the Farmers Financial Cycle to reduce default rates. The bank has also gained confidence in financing farmers and agribusinesses, disbursing loans of up to NGN 10 million while putting risk-reduction processes in place.
“We were already thinking of backing out of the agricultural sector because of our experience. We met AgFin in 2023, and the training we received opened our eyes to what we need to do differently in agricultural financing. We separated our loan products and made adjustments to how we design and deliver them - which made the difference. As a bank, agriculture is our major source of income. Poultry is lucrative in Plateau State, and we have zero bad loans in financing, despite occasional repayment delays,” said Felicia Solomon, Head of Credit and Marketing, Gowans Microfinance Bank, Plateau State, Nigeria
Building Resilience Through Smarter Finance
With support from the German Government through GP AgFin, Gowans MfB has transitioned from a conservative approach to agricultural lending to one that is more confident and better managed in terms of risk. This has enabled the bank to reach more clients across agricultural value chains and contribute to the economic resilience and growth of farmers and entrepreneurs in Plateau State.
Author: Ayodele Adesanmi, Communication Advisor, GIZ Nigeria