The Federal Government has launched a major agricultural financing initiative aimed at more than doubling Nigeria’s annual grain production from 11 million tonnes to 25 million tonnes, as part of efforts to tackle food shortages, reduce inflation and strengthen national food security.
The programme, known as the Renewed Hope Smallholder Agricultural Financing Programme, is being implemented through the Bank of Agriculture (BOA) to provide smallholder farmers with affordable loans for improved seeds, subsidised fertilisers and other essential farming inputs.
Speaking at the launch of the Renewed Hope Smallholder Support and Value Chain Fund in Zaria, the Managing Director of the Bank of Agriculture, Ayodele Sotinrin, said the initiative is designed to boost crop yields and transform agricultural productivity across the country.
He explained that the intervention would be financed through single-digit loans carrying a nine per cent interest rate, stressing that the support is not a grant but a revolving credit scheme intended to ensure long-term sustainability while making financing accessible to farmers.
According to Sotinrin, 20 farm aggregators were selected from over 1,240 applicants to participate in the pilot phase after meeting technical and operational requirements needed to support farmers in participating states.
The first phase is expected to benefit about 500,000 farmers during the current farming season before expanding to two million farmers next year and ultimately reaching five million farmers nationwide.
He said the government’s production target is achievable if five million farmers each cultivate one hectare of land and harvest at least five tonnes per hectare, resulting in an estimated 25 million tonnes of grain annually. Such output, he noted, would significantly reduce food imports, meet domestic demand and create export opportunities for Nigeria’s agricultural sector.
The BOA chief also announced plans to support year-round farming through irrigation financing and irrigation-as-a-service programmes to enable farmers to maintain production beyond the rainy season.
Minister of Agriculture and Food Security, Senator Abubakar Kyari, reaffirmed the government’s determination to fight rising food prices by expanding local food production instead of depending on imports.
He disclosed that about two million bags of agricultural inputs would be distributed through registered farm aggregators, who would also provide extension services and implement a Guaranteed Minimum Price system to protect farmers from exploitation and ensure fair earnings for their produce.
Kyari observed that although nearly 90 per cent of Nigerian farmers cultivate less than one hectare of land, they account for about 85 per cent of the country’s food production, making support for smallholder farmers critical to achieving lasting food security.
Also speaking, Group Managing Director of Arzikin Noma Africa, Adeoluwa Adeshola, emphasised the importance of sustained private-sector participation in the programme.
He said the revolving loan structure would allow more farmers to benefit in future farming seasons, provided beneficiaries repay their loans promptly after harvest.
He added that traditional rulers, community leaders and security agencies have pledged their support to ensure successful implementation, expressing confidence that the initiative would improve rural livelihoods, lower food inflation and position Nigeria as one of Africa’s leading agricultural producers and exporters.
