The Bank of Agriculture secures a $1 billion fund with Afreximbank to empower Nigeria’s smallholder farmers.
This intervention aims to boost food security, expand market access and transform the agricultural value chain.
The Bank of Agriculture (BOA) has secured a $1 billion intervention fund to transform smallholder farming in Nigeria and strengthen the agricultural value chain from production to market access.
The financing, obtained through a partnership with the African Export-Import Bank (Afreximbank), marks a significant milestone in the country’s push toward national food security and inclusive economic growth.
It comes shortly after President Bola Tinubu approved the creation of the National Food Security Fund, a revolving matching fund to be managed with state governments.
The new fund, officially named the National Smallholder Farmers Fund, is designed to tackle systemic financial barriers that have long constrained smallholder farmers. It will provide affordable credit for inputs, mechanization, and structured market linkages.
Although smallholder farmers account for more than 90% of Nigeria’s agricultural output, many lack access to finance, modern tools, and stable markets.
This intervention aims to close those gaps, enabling farmers to scale operations, boost productivity, and integrate more effectively into local and continental supply chains.
“This is more than just a fund; it is a bold commitment to ensuring our nation’s food security,” said Ayo Sotinrin, Managing Director and CEO of BOA.
“By joining forces with Afreximbank, we are unlocking opportunities for smallholder farmers to transition from subsistence farming into sustainable, profitable agribusiness.”
Kanayo Awani, Executive Vice President for Intra-Africa Trade and Export Development at Afreximbank, stressed the strategic value of the initiative.
“Smallholder farmers are essential to the agricultural value chain and vital to agro-industry growth. This partnership with BOA will help deliver greater impact in Nigeria’s quest for food security and economic transformation,” she noted.
To guarantee effectiveness, the BOA–Afreximbank collaboration will be anchored on two mechanisms:
- Guarantee Framework: Afreximbank will provide guarantees for loans issued by BOA, lowering credit risks and extending financing to underserved farmers.
- Currency Swap Arrangement: Dollar-denominated funds from Afreximbank will be converted into naira, allowing BOA to lend directly to farmers without exposing them to exchange rate volatility.
This structure secures international capital while shielding farmers from macroeconomic shocks.
