Nigeria’s smallholder farmers are to access new financing support through a $1 billion agreement between the Bank of Agriculture (BOA) and the African Export-Import Bank (Afreximbank). The deal was signed at the Intra-African Trade Fair (IATF) 2025 in Algiers, Algeria.
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Agreement details
The pact was signed by BOA Managing Director, Ayo Sotinrin, and Afreximbank’s Executive Vice President for Intra-African Trade and Export Development, Kanayo Awani. It was concluded under the leadership of Afreximbank President, Benedict Oramah.
The facility will establish a National Smallholder Farmers’ Fund to address persistent financing gaps in the sector. Smallholders make up nearly 95 per cent of Nigeria’s agricultural value chain, yet face limited access to affordable credit.
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Areas of support
The fund will provide blended finance to reduce borrowing costs. It will cover inputs such as seeds, fertilisers, agrochemicals, and mechanisation services aimed at improving yields. It will also support investments in storage, aggregation, and logistics to reduce post-harvest losses and connect farmers with processors and exporters.
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Government alignment
“This deal represents a bold step toward building a sustainable future. It gives smallholder farmers the resources they need to thrive, contributing to food security and economic growth,” Sotinrin said.
He noted that the initiative aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritises farmer empowerment and food security as central to economic transformation.
