The Food and Agriculture Organisation has intensified efforts to promote deforestation-free finance in Nigeria, chiefly on cocoa and oil palm production in the Niger Delta region.

The initiative formed the focus of a two-day workshop held in Lagos from Wednesday, with the theme, ‘Advancing Deforestation-Free Finance in Nigeria’s Banking Sector: From Roadmap to Implementation.’

The workshop is being held under the Global Environment Facility Food Systems, Land Use and Restoration Impact Programme, funded by the Global Environment Facility and implemented by FAO in collaboration with national partners.

The programme seeks to promote integrated landscape management, sustainable food systems, biodiversity conservation and restoration of degraded ecosystems in major commodity landscapes, particularly cocoa and oil palm.

Speaking at the opening of the workshop, the FAO Representative in Nigeria and to the Economic Community of West African States, Dr Hussein Gadain, described the gathering as a critical step from dialogue to implementation.

According to the FAO representative, agriculture, trade, investment and environmental sustainability are becoming increasingly interconnected globally, while financial institutions now play a major role in shaping how agricultural commodities are produced and financed.

He said Nigeria, as one of Africa’s leading producers of cocoa and oil palm, had an opportunity to align agricultural growth with environmental sustainability.

“Nigeria remains one of Africa’s leading producers of cocoa and oil palm, sectors that contribute significantly to livelihoods, food security, employment and economic development. However, agricultural expansion continues to place increasing pressure on forests, biodiversity and ecosystems,” Gadain said.

He added that FAO would continue to support Nigeria through technical assistance, policy support, capacity building and multi-stakeholder engagement, expressing confidence that Nigeria could emerge as a regional leader in sustainable and deforestation-free agricultural finance.

He noted that financial institutions could shape land-use practices and commodity production through lending policies, investment frameworks, risk management systems and sustainability standards.

The FAO representative stated that global trends are increasingly shifting towards sustainable banking frameworks, Environmental, Social and Governance risk management, sustainability-linked lending and climate-informed investment decisions.

Gadain said the Nigerian Sustainable Banking Principles established by the Central Bank of Nigeria provided a strong foundation for advancing responsible finance.

He stated that participants at the workshop would review the policy and regulatory environment, findings from a national financial sector scoping study, and global best practices in traceability and accountability.

“Deforestation-free finance is not only an environmental necessity but also an economic and market imperative, as global buyers and investors increasingly demand sustainable supply chains,” Gadain said.

He also stressed the need to include smallholder farmers, women, youths, cooperatives and small and medium-scale enterprises in the transition to sustainable financing.

“Financial innovation must be accessible, affordable, scalable and responsive to local realities,” Gadain added.

Also speaking, the Director-General of the Forestry Research Institute of Nigeria, Dr Zacharia Yaduma, said the workshop highlighted the urgent need to translate policy commitments into practical financing solutions.

Yaduma said Nigeria must pursue agricultural expansion, economic development and environmental sustainability simultaneously.

He explained that while institutions such as the Forestry Research Institute of Nigeria generate knowledge for sustainable forest management, decisions made by financial institutions and policymakers also determine land-use outcomes.

“The transition to deforestation-free production systems is no longer optional; it is becoming a global standard,” Yaduma said.

He added that access to international markets, climate finance and investment capital was becoming increasingly tied to sustainability performance, traceability and environmental responsibility.

Yaduma remarked that although the Nigerian Sustainable Banking Principles provide a solid framework, more practical financial instruments are needed to support farmers, SMEs and agribusinesses.

“Without sustainable financing, even the most well-designed land-use strategies risk remaining theoretical,” Yaduma said.

Participants at the workshop included representatives of the CBN, the Federal Ministry of Agriculture and Food Security, the Federal Ministry of Environment, the National Task Force on the European Union Deforestation Regulation, the Forestry Research Institute of Nigeria and the European Union Delegation.