$1 billion boost for Nigerian smallholder farmers

By Kehinde Samuel

The Bank of Agriculture (BOA) has signed a landmark agreement with the African Export-Import Bank (Afreximbank) to mobilise up to $1 billion for direct financial support to smallholder farmers and the agricultural value chain in Nigeria.

The deal, finalised on September 17, 2025, during the Intra-African Trade Fair (IATF) 2025 in Algiers, Algeria, aims to bridge the systemic financial gap faced by Nigerian farmers by providing access to affordable credit for critical inputs, mechanisation, and structured market linkages.

The funding will establish a National Smallholder Farmers’ Fund, designed to support smallholder farmers, who account for over 90% of Nigeria’s agricultural output.

The initiative will offer blended finance solutions, making agricultural loans more accessible while increasing productivity, value addition, and market integration. “This is more than just a fund; it is a bold commitment to ensuring our nation’s food security,” said Ayo Sotinrin, Managing Director/CEO of BOA.

The agreement also includes frameworks for loan guarantees from Afreximbank to reduce credit risk, as well as currency swap arrangements to convert dollar funding into local currency for lending.

The partnership is expected to significantly boost Nigeria’s agricultural sector, enhancing food security and driving economic growth.