Reps Investigate Withheld Development Funds for Farmers

News in brief:

-Lawmakers are probing delays in the release of AfDB and JICA funds meant for hundreds of thousands of Nigerian farmers.

-The House warned that continued withholding could disrupt the 2026 farming season and jeopardise future foreign-backed funding.

The House of Representatives ordered an urgent investigation into the alleged non-release of intervention funds provided by development partners for Nigeria’s agricultural sector, warning that the delays pose a serious threat to food security and farming activities nationwide.

The resolution, raised as a Matter of Urgent Public Importance, was sponsored by Hon. Bello A. Ka’oje and unanimously adopted at plenary on Thursday.

Lawmakers Cite Food Security Emergency

Leading the debate, Hon. Ka’oje recalled that shortly after assuming office, President Bola Ahmed Tinubu declared a state of emergency on food security on 13 July 2023, in response to rising hunger levels and declining agricultural output.

He said the Federal Government, in collaboration with development partners, subsequently mobilised significant financial support to boost agricultural production across the country.

AfDB Loan Disbursement Partially Withheld

Ka’oje disclosed that in February 2023, Nigeria signed a $134 million loan agreement with the African Development Bank (AfDB) to support the National Agriculture Growth Scheme Agro-Pocket Project (NAGS-AP).

According to him, the first tranche of $99,665,000 was released to the Federation’s Consolidated Revenue Fund after the deduction of a 0.025% front-end fee.

However, he noted that while the Federal Ministry of Finance released ₦55,986,301,549.95 and ₦40,486,800,000 to the Federal Ministry of Agriculture and Food Security (FMAFS) and the NAGS-AP project accounts domiciled at the Central Bank of Nigeria, an outstanding balance of ₦55,295,810,075 remains unpaid.

“These funds were intended to provide critical farm inputs to 280,000 wheat farmers under the 2024 to 2025 dry season programme, as well as 150,000 rice farmers under the second phase of the intervention,” he said.

JICA Food Security Loan Also Delayed

The lawmaker further informed the House that in April 2024, Nigeria entered into a separate loan agreement with the Japan International Cooperation Agency (JICA) for a Food Security Emergency Support Loan valued at 15 billion Japanese yen.

He said the first tranche of 12 billion yen, equivalent to ₦118,955,186,000 after fees, was disbursed to the Consolidated Revenue Fund in March 2025.

The funds, he explained, were earmarked to support 550,000 smallholder farmers across rice, maize, soya beans and cassava value chains during the 2025 wet season and the 2025 to 2026 dry season farming cycles.

Ka’oje lamented that delays in releasing the funds to implementing agencies had left many farmers without access to essential inputs.

“This has already reduced agricultural output during the 2025 harvests and now threatens the 2026 farming season,” he said.

He warned that continued delays could also prevent the disbursement of an additional $200 million under the AfDB result-based financing scheme, which is contingent on the successful implementation of earlier interventions.

“The intervention funds accessed from development partners are meant for specific purposes. Their undue withholding by the Federal Ministry of Finance beyond approved timelines undermines agricultural production and jeopardises national food security,” he added.

House Mandates Committee Investigation

Following deliberations, the House resolved to investigate the circumstances surrounding the non-release of the outstanding AfDB and JICA funds to the Federal Ministry of Agriculture and Food Security under the NAGS-AP project.

It mandated the House Committee on Agricultural Production and Services to carry out the investigation and report back within two weeks.

The motion was unanimously adopted, underscoring the House’s determination to ensure the timely release and proper utilisation of agricultural intervention funds to support farmers and strengthen national food security.