UNDP, BOA Sign Deal to Improve Agricultural Financing in Nigeria

News in brief:

-UNDP and Nigeria's BoA have signed an MoU to reform the country's agricultural financing system and strengthen institutional capacity.

-The partnership will drive the One Million Hectare Tree Crop Programme, targeting large-scale cultivation, export growth and rural job creation.

The United Nations Development Programme (UNDP) and the Bank of Agriculture (BoA) have signed a Memorandum of Understanding (MoU) to strengthen Nigeria’s agricultural financing architecture and support large-scale agricultural development.

The agreement, signed at the UN House in Abuja, also featured the symbolic handover of ICT equipment aimed at strengthening the operational capacity of the bank.

Speaking at the event, UNDP Resident Representative, Elsie Attafuah, said Nigeria’s ongoing economic reforms must translate into tangible benefits for citizens.

She noted that the country is currently undergoing one of its most significant reform cycles in decades, referencing key policy shifts such as foreign exchange reforms, fuel subsidy removal and energy sector liberalisation.

Agriculture Central to Delivering Reform Benefits

According to Attafuah, reforms will only be meaningful when they improve livelihoods, increase rural incomes and create employment opportunities for young people.

She emphasised that agriculture remains central to achieving these outcomes, describing Nigeria’s food systems as the country’s largest employer and a major contributor to inflation dynamics.

Attafuah added that successful agricultural transformation would strengthen economic stability, social cohesion and public confidence.

She also commended the leadership of President Bola Ahmed Tinubu for supporting reforms aimed at repositioning the financial institution.

Institutional Transformation and Financing Framework

Attafuah explained that the partnership is designed to rebuild Nigeria’s agricultural financing architecture by integrating development finance, climate finance and private investment.

She noted that strengthening institutional capacity is critical for delivering development outcomes, adding that modern systems, data infrastructure and operational tools are necessary for effective financing frameworks.

The ICT equipment handed over during the event is expected to improve data management, operational efficiency and service delivery within the bank.

One Million Hectare Tree Crop Programme

At the centre of the partnership is the One Million Hectare Tree Crop Programme, a presidential initiative designed to expand the cultivation of high-value economic crops across the country.

Managing Director and Chief Executive Officer of the Bank of Agriculture, Ayodeji Sotinrin, said the programme would focus on crops such as cashew, oil palm, coffee and rubber.

He explained that the initiative is structured as a commercially driven national programme rather than a pilot project, with clear financing mechanisms, technical frameworks and monitoring systems.

Phased Implementation and Job Creation

Sotinrin said implementation would begin with 200,000 hectares developed through nucleus estates and cooperatives, expand to 400,000 hectares supported by processing centres, and eventually scale to one million hectares integrated into export value chains and carbon credit frameworks.

According to him, about 70 per cent of the programme will be allocated to commercial operators under performance-based concessions, while 30 per cent will support citizens, including smallholder farmers, cooperatives, schools, and members of the National Youth Service Corps (NYSC).

He said the programme is expected to generate more than two million direct and indirect jobs through nursery operations, planting, processing and export activities.

The initiative is also projected to strengthen five national tree crop value chains, boost foreign exchange earnings, restore degraded land and support carbon sequestration efforts.

Call for Private and Development Finance Participation

Sotinrin called on commercial banks, impact investors, processors and development partners to co-finance and support the initiative.

He stressed that the success of the partnership would be measured by tangible outcomes such as increased access to finance for farmers, expanded cultivation areas, job creation and stronger agricultural export performance.