Nigeria Unveils N250bn Credit Facility to Support Smallholder Farmers

Across Nigeria’s vast farmlands, smallholder farmers continue to sustain the nation’s food supply and rural economy. From rice fields to vegetable farms and cocoa plantations, these farmers remain the backbone of Nigeria’s agricultural productivity.

In a move to strengthen this critical sector, a ₦250 billion financing facility has been approved by the Federal Government to expand access to affordable credit for farmers. The fund will be disbursed through the Bank of Agriculture (BOA), allowing farmers to access loans at single-digit interest rates to invest in improved seeds, fertilizer, mechanization, irrigation, and storage.

The initiative is part of broader efforts to strengthen Nigeria’s agricultural ecosystem through key institutions such as the Nigerian Agricultural Insurance Corporation (NAIC) and the National Agricultural Quarantine Service (NAQS). Over the past two years, NAIC alone has provided risk coverage worth about ₦700 billion, benefiting more than 199,000 farmers nationwide.

Support for farmers has also included the distribution of over 1.9 million bags of fertilizer to nearly one million farmers, while research institutions under the Agricultural Research Council of Nigeria (ARCN) continue to drive crop innovation. A notable effort is the distribution of 40 million cocoa seedlings, aimed at revitalizing Nigeria’s cocoa industry.

The financing facility builds on earlier interventions which began in September 2025 when the Bank of Agriculture secured a $1 billion intervention fund with the African Export-Import Bank (Afreximbank) to strengthen Nigeria’s agricultural value chain. Earlier in October 2025, the bank also secured a $200 million Livelihood Support Fund in partnership with the International Organization for Migration (IOM) to support displaced persons and migrants.

With smallholder farmers responsible for over 90 percent of Nigeria’s agricultural output, expanding access to finance and institutional support remains central to strengthening food security and unlocking the full potential of Nigeria’s agricultural sector.