BOA Targets 10 Million Farmers by 2028 Through Aggregator Financing Model

News in Brief:

—Nigeria's agriculture bank aggregation financing model is lowering input costs, improving market access and supporting the government's target of financing 10 million farmers by 2028.

—The bank is also expanding mechanisation, digital loan monitoring, logistics and guaranteed market systems to boost productivity, reduce post-harvest losses and strengthen food security.

The Bank of Agriculture (BOA) has revealed that its farmer aggregation financing model is helping reduce agricultural input costs while improving productivity, market access and food security through coordinated value chain investments.

Speaking in an interview with BusinessDay, the institution's Managing Director, Ayodeji Sotinrin, stated that the institution is implementing the Federal Government's Renewed Hope Smallholder Financing and Value Chain Fund to strengthen agricultural production and improve farmers' incomes.

Programme Targets Two Million Farmers

Sotinrin claimed that the programme is financing the provision of improved seeds to two million smallholder farmers to help them achieve minimum grain yields of five tonnes per hectare.

According to him, the initiative is expected to require at least 10 million bags of fertiliser, with two million bags already distributed and about 500,000 farmers financed.

He explained that the programme is being implemented through Farmer Aggregation Companies (FACs), which provide production support, market access, and financing, helping farmers achieve higher productivity.

The BOA chief said the revolving financing model is expected to support at least 10 million farmers by 2028.

Recapitalisation Supports Large-Scale Agricultural Investments

Sotinrin disclosed that BOA's recapitalisation has expanded beyond the ₦1.5 trillion allocation contained in the 2025 Federal Government budget, with additional funding already received for strategic agricultural interventions.

He said the bank is financing programmes including the Renewed Hope Smallholder Financing and Value Chain Fund, the Guaranteed Minimum Price Programme and what he described as Africa's largest agricultural mechanisation initiative.

According to him, the mechanisation programme will be supported by investments approaching $1 billion, including more than 2,000 tractors, over 10,000 farm implements and a manufacturing centre to be established on a 23-hectare site in Abuja alongside regional mechanisation service centres.

Digital Monitoring Strengthens Loan Recovery

To improve loan recovery and reduce non-performing loans, Sotinrin said the bank has digitised its financing operations from input distribution to harvest monitoring.

He explained that BOA uses digital systems to track financing across the agricultural value chain while extension officers provide technical support to farmers using modern agronomic practices.

The bank also monitors extension workers through digital platforms and collects field data to improve programme oversight.

According to him, a monitoring and evaluation consortium has also been established to provide real-time tracking of farmers and aggregation companies participating in BOA-supported programmes.

Logistics Investment Targets Post-Harvest Losses

Addressing post-harvest losses, Sotinrin said BOA is introducing battery-powered cargo tricycles to improve the transportation of farm produce from production areas.

He explained that while motorcycles typically transport between 50 and 100 kilograms of produce per trip, the new cargo tricycles can carry up to two tonnes at lower transport costs.

According to him, the initiative is expected to reduce post-harvest losses, lower logistics costs and improve productivity across agricultural value chains.

Aggregator Model Strengthens Market Access

Sotinrin said Farmer Aggregation Companies serve both as financing partners and produce off-takers, helping farmers secure reliable markets for their harvests.

He explained that BOA is supporting aggregators to expand their operations while connecting them with processors that convert raw commodities into finished products.

The bank is also partnering with commodity exchanges such as the Nigeria Commodity Exchange (NCX) and AFEX to promote electronic warehouse receipt systems that improve transparency, commodity trading and value chain efficiency.

Bulk Procurement Reduces Input Costs

According to Sotinrin, BOA's aggregation model enables the bank to negotiate bulk purchases of agricultural inputs, reducing costs for participating farmers.

He said aggregating demand across multiple farmer aggregation companies allows the bank to secure better prices from suppliers while ensuring farmers receive quality inputs at lower costs.

The cost savings, he added, are transferred directly to farmers, helping improve profitability and support stable food production.

Digital Verification Targets Genuine Farmers

Sotinrin said BOA works closely with farmer aggregation companies to verify farmer identities before financing is approved.

He explained that the bank vets farmer lists, monitors input distribution and tracks programme implementation throughout the production cycle to ensure support reaches genuine beneficiaries.

This digital monitoring system also strengthens accountability and improves programme efficiency.

On renewable energy and food security, Sotinrin said improving agricultural productivity requires a comprehensive approach rather than focusing on a single intervention.

He identified access to quality inputs, timely planting, efficient harvesting and stronger market systems as the key areas where BOA intends to continue supporting agricultural development and food security.