FG Approves ₦250bn Credit Facility for Smallholder Farmers through BoA

News in Brief

-The Federal Government has approved ₦250 billion for the Bank of Agriculture to offer single-digit credit to smallholder farmers in Nigeria.

-Agric Minister says over 1.9 million fertiliser bags reached one million farmers in two years as food prices fell 50 per cent.

The Federal Government has approved a ₦250 billion financing facility for the Bank of Agriculture (BoA) to deliver affordable credit to smallholder farmers nationwide. This new credit facility at single-digit interest rates aims to ramp up food production and agricultural mechanisation.

Minister of Agriculture and Food Security, Senator Abubakar Kyari, announced the 250bn grant during a Quarterly Citizens and Stakeholders Engagement Session in Abuja on Friday.

The facility targets empowering smallholder farmers—who produce over 90 per cent of Nigeria's farm output—with modern equipment, quality inputs, and expanded production capacity to enhance livelihoods and drive sector growth.

Kyari emphasised that the move aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda for food security, reducing import dependence, and fostering wealth creation in agriculture.

“This grant aims to support food production, enhance mechanisation and improve the livelihoods of farmers,” the minister stated.

Fertiliser Distribution and Soil Management Boost

The minister revealed that in the last two years, the government has distributed over 1.9 million bags of fertilisers to nearly one million farmers, alongside 12,000 litres of organic fertilisers to promote sustainable soil management.

These efforts include establishing a National Reference Laboratory and upgrading the National Fertiliser Management Platform for quality control and transparency, curbing fake products in the supply chain. The ministry has also trained 109 fertiliser inspectors and 329 industry stakeholders on regulatory compliance.

International Partnerships for Fertiliser Tech Transfer

Kyari also disclosed that Nigeria has forged partnerships with Russia, Turkiye, India, and Canada to bolster local fertiliser production and technology transfer in agriculture. He added that 109 fertiliser inspectors and another 329 industry stakeholders were trained on regulatory compliance.

These collaborations focus on value-chain development for priority crops like rice, maize, wheat, sorghum, millet, cassava, cocoa, and oil palm, providing improved seeds, pest control kits, and farmer training to shift smallholders from subsistence to commercial agribusiness.

Impact on Food Prices and Mechanisation Drive

According to the Agriculture minister, government interventions are yielding results. He disclosed that prices of essential food commodities have dropped by 50 per cent nationwide.

“We are focusing on boosting local production and reducing our reliance on imports, with the ultimate goal of making affordable, nutritious food accessible to all Nigerians. Our efforts are starting to pay off, with a notable impact on food prices. In fact, prices of essential food commodities have dropped by 50% nationwide,” he said.

The Renewed Hope Agricultural Mechanisation Programme has rolled out 2,000 tractors and equipment via nationwide centres, while the National Agricultural Growth Scheme Agro-Pocket has registered over 647,000 farmers, subsidising inputs for 622,000 of them.​

The Nigerian Agricultural Insurance Corporation (NAIC) has covered over 199,000 farmers with ₦700 billion in risk protection against climate shocks and crop failures.

Tackling Insecurity and Stakeholder Collaboration

Minister of Information and National Orientation, Mohammed Idris, in his remarks at the event, commented on the issue of insecurity in the farms. He stated that the Federal Government has increased operational support to the Armed Forces and security agencies by investing in modern equipment and intelligence capabilities, and strengthened inter-agency coordination.

He noted that as security improves in key farming communities and transportation corridors, agricultural productivity and commercial activities are gaining renewed momentum.

The Permanent Secretary, Federal Ministry of Agriculture and Food Security, Dr Marcus Ogunbiyi, described the event, which was attended by media, civil society, farmers’ groups, agro-processors, development partners, and agencies, as a platform for sharing ideas and aligning on Nigeria’s food systems.​

Ogunbiyi stressed that agricultural development is a shared national endeavour, urging structured stakeholder feedback for transparent, responsive policies.​