Bank of Agriculture and Afreximbank Launch $1bn Fund to Support Nigerian Farmers

What's Happening?

The Bank of Agriculture (BOA) and the African Export-Import Bank (Afreximbank) have signed an agreement to mobilize up to $1 billion for Nigeria's National Smallholder Farmers Fund. This initiative, announced at the Intra-African Trade Fair 2025 in Algiers, aims to support smallholder farmers who contribute over 90% of Nigeria's agricultural output. The fund will provide affordable credit for essential inputs, equipment, and market linkages to enhance productivity and value addition. The agreement includes loan guarantees and currency swap arrangements to facilitate access to international capital markets while protecting farmers from exchange rate risks.

Why It's Important?

This fund is crucial for Nigeria's agricultural sector, which is a significant part of the country's economy. By providing financial support and resources to smallholder farmers, the initiative aims to boost agricultural productivity and contribute to national food security. The collaboration aligns with President Tinubu's Renewed Hope Agenda, focusing on land reform and empowering youth and women in agriculture. The fund is expected to have a substantial impact on economic development and food sovereignty in Nigeria, potentially transforming subsistence farming into sustainable agribusiness.

What's Next?

The fund's implementation will involve collaboration with state governments and other stakeholders to ensure effective distribution and utilization of resources. The initiative is part of broader efforts to accelerate land reform and achieve national food sovereignty. The success of this fund could serve as a model for similar initiatives in other African countries, potentially leading to increased agricultural productivity and economic growth across the continent.