The Federal Government has approved a N250 billion facility for the Bank of Agriculture (BOA) to support smallholder farmers across Nigeria, offering them access to credit at a single-digit interest rate.
The Minister of Agriculture and Food Security, Sen. Abubakar Kyari, disclosed this during the Quarterly Citizens and Stakeholders Engagement Session in Abuja on Friday.
Kyari emphasized that the initiative was part of the government’s broader efforts to strengthen agricultural insurance, finance facilities, and leverage key institutions like the Nigerian Agricultural Insurance Corporation (NAIC), the National Agricultural Quarantine Service (NAQS), and the Bank of Agriculture (BOA).
What they are saying
Kyari explained that the Nigerian Agricultural Insurance Corporation (NAIC) has supported over 199,000 farmers in the past two years, with a total risk cover of N700 billion.
He added that the goal of the N250 billion facility is to boost agricultural productivity, enhance food security, and empower farmers with modern equipment and inputs.
- “This grant aims to support food production, enhance mechanization, and improve the livelihoods of farmers,” Kyari said.
He further highlighted that these efforts align with the Ministry’s mission to create livelihood opportunities, drive wealth creation, and accelerate growth in Nigeria’s agricultural sector.
Kyari also reflected on the Federal Government’s achievements in boosting agricultural productivity, including the distribution of over 1.9 million bags of fertilizer to nearly 1 million farmers and strengthening regulatory frameworks to promote transparency in the fertilizer supply chain.
Backstory
In September 2025, the Bank of Agriculture secured a $1 billion intervention fund in partnership with the African Export-Import Bank (Afreximbank) to enhance the agricultural value chain in Nigeria.
This fund aims to address systemic financial barriers faced by smallholder farmers, providing affordable credit for critical inputs, mechanization, and market linkages.
The National Smallholder Farmers Fund, which was approved by President Bola Tinubu, is designed to support smallholder farmers, who contribute over 90% of Nigeria’s agricultural output, by providing financial assistance and enhancing market access.
More insights
Kyari also praised the Agricultural Research Council of Nigeria (ARCN) for driving transformative change in crop production and varietal development.
The distribution of 40 million cocoa seedlings, he noted, would support the revitalization of Nigeria’s cocoa industry and stimulate long-term plantation development.
The National Agricultural Development Fund (NADF) has also contributed to Nigeria’s agricultural growth by financing various initiatives over the past two years, further bolstering the sector’s sustainability.
What you should know
In October 2025, the Bank of Agriculture (BOA) also secured a $200 million Livelihood Support Fund in partnership with the International Organization for Migration (IOM) to support displaced persons and migrants across Nigeria.
The fund aims to promote economic inclusion and resilience for vulnerable groups in the country.
The memorandum of understanding for this initiative was signed by IOM’s Deputy Director General for Operations, Ugochi Daniels, and BOA’s CEO, Ayo Sotinrin, marking a significant step towards economic empowerment for Nigeria’s displaced populations.
