BOA, FG launch financing scheme to increase grain output to 25 million tonnes

The Bank of Agriculture (BOA), in partnership with the Federal Government, has launched the Renewed Hope Smallholder Agricultural Financing Programme, targeting an increase in Nigeria’s annual grain production from approximately 11 million tonnes to 25 million tonnes.

The initiative is designed to boost food production, improve food security, reduce rising food prices, and expand access to affordable financing for smallholder farmers across the country.

Speaking at the unveiling of the Renewed Hope Smallholder Support and Value Chain Fund in Zaria on Friday, the Managing Director of BOA, Mr. Ayodeji Oludare-Sotinrin, said the programme would provide farmers with subsidised fertilisers, certified hybrid seeds, and other critical agricultural inputs through a single-digit interest financing scheme.

What they are saying

According to Oludare-Sotinrin, the inputs will be financed under BOA’s 9% lending facility rather than distributed as grants, ensuring affordability for farmers while maintaining the sustainability of the intervention.

• “This is designed to increase productivity and strengthen national food security sustainably,” he said.

He disclosed that BOA selected 20 farm aggregators from over 1,240 applicants after evaluating their technical competence and operational capacity to support farmers across participating states during the pilot phase.

• The programme’s first phase is expected to reach about 500,000 farmers during the current farming season. The bank plans to expand coverage to two million farmers next year and ultimately scale up to five million farmers nationwide.
• Oludare-Sotinrin noted that if five million farmers cultivate one hectare each and achieve yields of at least five tonnes per hectare, Nigeria could generate around 25 million tonnes of grain annually for domestic consumption and export.

He added that the projected increase in output would help reduce food imports, stabilise local food prices, strengthen food security, create jobs in rural communities, and support broader economic growth.

The BOA chief also revealed plans to introduce irrigation financing and irrigation-as-a-service initiatives aimed at supporting all-season farming, improving productivity, increasing farmers’ incomes, and reducing dependence on rain-fed agriculture.

He urged beneficiaries to utilise the inputs strictly for agricultural purposes, avoid diversion or resale, comply with extension service guidelines, and ensure timely repayment of loans to sustain the revolving financing model.

More insights

Earlier, the Minister of Agriculture and Food Security, Senator Abubakar Kyari, reiterated the Federal Government’s commitment to tackling food inflation through increased domestic production rather than food imports.

• Kyari explained that food affordability is largely driven by supply and demand dynamics, stressing that expanding agricultural output through timely access to quality inputs remains a key pillar of the Tinubu administration’s food security strategy.
• The minister said about two million farmers would benefit from the programme through registered farm aggregators that will provide quality inputs, extension services, and a Guaranteed Minimum Price mechanism designed to protect farmers from exploitative market practices after harvest.
• “Although nearly 90% of Nigerian farmers cultivate less than one hectare, they produce about 85% of the country’s food, making sustained support for smallholders essential to food security,” Kyari said.

He expressed confidence that improved seed varieties, weather-based advisory services, timely input distribution, and guaranteed pricing would boost agricultural productivity, lower food prices, and enhance farmers’ earnings.

What you should know

In May 2026, BOA proposed a nationwide partnership with members of the House of Representatives to mechanise arable land across Nigeria’s 360 federal constituencies.

The proposal, presented by BOA Managing Director Ayodeji Oludare-Sotinrin during plenary in Abuja, seeks to accelerate the transition from subsistence farming to large-scale mechanised agriculture as part of efforts to transform the country’s agricultural sector.