Nigeria’s smallholder farmers are set for relief as the Bank of Agriculture (BOA) sealed a $1 billion financing pact with Afreximbank.
The agreement was signed at the ongoing Intra-African Trade Fair (IATF) 2025 in Algiers, Algeria. BOA’s Managing Director, Ayo Sotinrin, signed alongside Kanayo Awani, Afreximbank’s Executive Vice President for Intra-African Trade and Export Development.
The deal was endorsed under the leadership of Prof. Benedict Oramah, Afreximbank’s President, who has long championed the strengthening of Africa’s agricultural value chains and trade integration.
The pact will create a National Smallholder Farmers’ Fund to close financing gaps facing nearly 95% of players in Nigeria’s agricultural value chain.
Blended finance solutions will be used to make credit more affordable. Farmers will be able to access loans for seeds, fertilisers, agrochemicals, and mechanisation services to boost yields.
Food Security and Renewed Hope
The fund will also invest in storage, aggregation, and logistics to reduce post-harvest losses. It will connect farmers directly with buyers, processors, and exporters through structured market linkages.
At the signing, Sotinrin said: “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.”
He added that the partnership aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which places food security and farmer empowerment at the centre of Nigeria’s economic revival.
Could this $1 billion lifeline finally transform smallholder farming into a stable foundation for Nigeria’s food security? Readers, what do you think?
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