Nigeria’s smallholder farmers are set for a lifeline as the Bank of Agriculture (BOA) has sealed a $1 billion financing pact with the African Export-Import Bank (Afreximbank).
BOA’s Managing Director, Mr. Ayo Sotinrin, formalised the agreement with Mrs. Kanayo Awani, Afreximbank’s Executive Vice President for Intra-African Trade and Export Development, at the ongoing Intra-African Trade Fair (IATF) 2025 in Algiers, Algeria.
This was contained in a statement issued by Senior Manager, Head, Corporate Communication of BOA, Maikenti Akila on Tuesday.
According to the statement, the landmark deal was endorsed under the leadership of Afreximbank President, Prof. Benedict Oramah, who has been at the forefront of mobilising resources to strengthen Africa’s agricultural value chains and intra-African trade.
It added that the facility will establish a National Smallholder Farmers’ Fund, designed to close financing gaps affecting smallholder farmers, who account for nearly 95 per cent of players in Nigeria’s agricultural value chain.
Under the scheme, BOA and Afreximbank will provide blended finance solutions to make credit more affordable.
The loans will cover the purchase of seeds, fertilisers, and agrochemicals, as well as mechanised services that improve efficiency and yields.
The fund will also support investments in storage, aggregation, and logistics infrastructure to cut post-harvest losses while creating structured market linkages to connect farmers directly with buyers, processors, and exporters.
“This deal represents a bold step toward building a sustainable future. It provides smallholder farmers with the resources they need to thrive, contributing significantly to national food security and economic growth,” Sotinrin said at the signing.
He added that the partnership is in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritises food security and farmers’ empowerment as key drivers of Nigeria’s economic growth.
Fidelis David
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