EU Funds Nigerian Banks with ₦320bn Credit to Finance Agriculture

News in Brief:

-EU approves a ₦320.5 billion (€190 million) credit facility to support Nigerian agribusinesses through local banks.

-This funding targets climate-smart agriculture, cocoa, and dairy production as part of efforts to strengthen agricultural value chain.

The European Union (EU) has approved a ₦320.5 billion (€190 million) credit facility to Nigerian banks aimed at strengthening the country’s agricultural sector.

According to Bolaji Adebiyi, Special Adviser on Media to the Minister of Budget and Economic Planning, Senator Atiku Bagudu, the European Investment Bank (EIB) will channel the funds through Nigerian commercial banks and financial institutions to expand lending to agribusinesses.

The announcement was made during a meeting between EIB senior executives and officials of the Federal Ministry of Budget and Economic Planning on the sidelines of the Global Gateway Forum in Brussels, Belgium.

Focus on Cocoa, Dairy, and Climate-Smart Agriculture

Thourayya Tricki, EIB’s Director of International Partnerships, said the credit package is part of the EU’s continued support for Nigeria’s agricultural value chains, particularly in cocoa and dairy production.

“The Nigerian investment package for climate-smart agriculture is at an advanced stage, ensuring sustainability and competitiveness of agri-food products,” Tricki said.

The initiative also includes credit lines and technical assistance to development finance institutions (DFIs) and commercial banks, enabling them to broaden lending to the agricultural subsector.

Alongside the agricultural credit line, the EU has approved an additional €68 million to support Nigeria’s vaccine manufacturing and pharmaceutical industry. This includes an €18 million technical assistance grant and a €50 million credit facility.

Nigeria’s Reforms Under the Renewed Hope Agenda

Officials from the Nigerian delegation — including Bolaji Onalaja, Special Assistant to the Minister, and Benjamin Galadima, Focal Officer of the EU Unit — highlighted ongoing reforms under President Bola Tinubu’s Renewed Hope Agenda.

They also discussed the upcoming National Development Plan (2026–2030), which aims to attract sustainable investments and strengthen community-level development through the ward-based development programme.

High-Level Engagements and Global Partnerships

High-level meetings were held with EU institutions such as the Directorate of International Partnerships (INTPA) and the European Bank for Reconstruction and Development (EBRD).

On behalf of Minister Bagudu, who was on official assignment in Vienna, Austria, the Nigerian delegation thanked Gauthier Mignot, Head of the EU Delegation to Nigeria and ECOWAS, for facilitating Nigeria’s participation at the 2025 Global Gateway Forum.

In her keynote address, Ursula von der Leyen, President of the European Commission, announced the expansion of the Global Gateway Investment Package to €400 billion, alongside the creation of a dedicated Investment Hub to accelerate project delivery, particularly in Africa.

The Global Gateway Forum brings together global leaders and stakeholders to promote sustainable infrastructure investment and strengthen strategic partnerships worldwide.