Shettima Orders Fast-Track of ₦250B Loan to Support Nigerian Farmers

News in brief:

-Shettima has ordered the quick disbursement of a ₦250bn loan to smallholder farmers at low interest rates, aiming to reduce food insecurity and support agricultural productivity.

-Experts and governors stress the need for transparency, accountability, and collaboration to ensure the funds reach real farmers and deliver long-term impact.

At a time when millions of Nigerians are struggling with rising food prices and declining farm yields, Vice President Kashim Shettima has directed the speedy disbursement of the Federal Government’s ₦250 billion loan facility to farmers. The loan, to be managed by the Bank of Agriculture (BoA), will be given to smallholder farmers at a single-digit interest rate, a move that could help strengthen food security and support struggling rural communities.

The directive was issued during the 6th meeting of the Presidential Food Systems Coordinating Unit (PFSCU) Steering Committee, held at the Presidential Villa in Abuja.

Why the Loan Matters Now

Nigeria is currently grappling with food insecurity, with an estimated 30.8 million people food insecure, according to government data. Farmers have long complained about a lack of access to credit, high fertiliser costs, poor storage systems, and limited infrastructure. Many are forced to depend on middlemen or informal lenders with high interest rates, leaving them in cycles of debt.

Vice President Shettima stressed the need for a clear implementation roadmap to ensure the loan reaches real farmers and not ghost beneficiaries. “We need a robust plan that guarantees these funds reach the intended farmers and translates into real productivity gains,” he said.

Presidential Support and Reform Push

Shettima praised President Bola Tinubu for backing reforms that directly impact agriculture, including the liberalisation of fertiliser raw materials and the establishment of the Presidential Seed Fund. These initiatives are designed to make inputs more affordable, improve crop quality, and reduce Nigeria’s reliance on food imports.

“Mr. President’s clear directives on fertiliser and seed reform have empowered the PFSCU to fast-track delivery in ways that directly support farmers and strengthen our food systems,” Shettima added.

Governors Weigh In

State governors also made their voices heard during the meeting:

• Governor Biodun Oyebanji of Ekiti State emphasised the need for a proper structure that guarantees the ₦250 billion loan reaches genuine smallholder farmers. He pledged Ekiti State’s financial support for PFSCU every month.
• Governor Umar Namadi of Jigawa State praised the Bank of Agriculture’s role but called for subsidies to cushion smallholder farmers from rising production costs.
• Governor Bassey Otu of Cross River State agreed on the importance of credit but stressed that local farmers also need incentives such as subsidies to keep agriculture profitable.

Experts Call for Collaboration

Marion Moon, PFSCU Coordinator, highlighted that Nigeria’s fragile food security must be protected. She noted that despite progress in coordination with ministries and development partners, urgent action is needed to ensure policies translate into real benefits for farmers.

“When federal agencies, the private sector, and partners align, we can move swiftly from intent to delivery,” Shettima said, reinforcing the need for collaboration.

Looking Ahead

For Nigerian farmers, especially smallholder producers who account for nearly 70% of the country’s food supply, the loan facility represents hope. If properly implemented, it could improve access to seeds, fertiliser, and irrigation systems, boost yields, and reduce the burden of expensive loans.

But experts warn that transparency and accountability will be key. Without proper monitoring, funds risk being diverted, leaving farmers trapped in the same cycle of poor productivity and food insecurity.