The Bank of Agriculture (BOA) has secured a $1 billion intervention fund in partnership with the African Export-Import Bank (Afreximbank) to strengthen Nigeria’s agricultural value chain. Profiled as the National Smallholder Farmers Fund, the initiative follows President Bola Tinubu’s approval of the National Food Security Fund and is tailored to address chronic financing gaps that limit smallholder productivity. Farmers responsible for over 90 percent of Nigeria’s food output, will gain affordable credit for inputs, mechanization, and structured market linkages.
The financing package combines Afreximbank guarantees to reduce credit risk with a currency swap arrangement to shield borrowers from exchange rate volatility. According to BOA’s Managing Director Ayo Sotinrin, the partnership represents a “bold commitment to food security and agribusiness transformation.” Expected outcomes include higher productivity, stronger market integration, improved household incomes, and a more resilient agricultural sector capable of driving inclusive economic growth across Nigeria.
