What's Happening?
The Bank of Agriculture (BOA) and African Export-Import Bank (Afreximbank) have signed an agreement to mobilize up to $1 billion for Nigeria's National Smallholder Farmers Fund. This fund aims to support smallholder farmers and strengthen the agricultural value chain from production to market. The agreement was signed at the Intra-African Trade Fair 2025 in Algiers by BOA's managing director Ayo Sotinrin and Afreximbank's executive vice president Kanayo Awani. The fund will provide affordable credit for inputs, equipment, and market linkages to increase productivity and value addition, aligning with President Tinubu's Renewed Hope Agenda.
Why It's Important?
This fund is crucial for Nigeria's agricultural sector, where smallholder farmers account for over 90% of the country's agricultural output but face challenges like limited access to finance and markets. By providing affordable credit and support, the fund aims to transform subsistence farming into sustainable agribusiness, enhancing food security and economic development. The collaboration between BOA and Afreximbank represents a significant investment in Nigeria's agricultural future, potentially leading to increased productivity, job creation, and improved livelihoods for farmers.
