The Federal Government has unveiled a new agricultural financing programme aimed at increasing Nigeria’s annual grain output from 11 million tonnes to 25 million tonnes as part of efforts to strengthen food security, reduce food inflation and boost agricultural productivity.
The initiative, known as the Renewed Hope Smallholder Agricultural Financing Programme, is being implemented by the Bank of Agriculture (BOA) to provide smallholder farmers with affordable access to improved farm inputs, including subsidised fertilisers, certified hybrid seeds, and other essential agricultural materials.
Speaking at the unveiling of the Renewed Hope Smallholder Support and Value Chain Fund organised by Arzikin Noma Africa in Zaria, the Managing Director of BOA, Ayodele Sotinrin, said the programme was designed to improve crop yields and increase national food production.
Sotinrin explained that the farm inputs would be financed through BOA’s single-digit lending facility at an interest rate of nine per cent, stressing that they were not grants but loans intended to ensure the sustainability of the intervention while remaining affordable for farmers.
He disclosed that the bank selected 20 farm aggregators from more than 1,240 applicants for the pilot phase after assessing their technical and operational capacity to support farmers across participating states..
According to him, the first phase of the programme will benefit about 500,000 farmers during the current farming season before expanding to two million farmers next year and eventually reaching five million farmers nationwide..
Sotinrin said the projected increase in food production is achievable if five million farmers cultivate one hectare each and harvest at least five tonnes per hectare.
“That would result in about 25 million tonnes of food annually, sufficient to meet domestic demand, reduce dependence on food imports and create opportunities for agricultural exports,” he said.
He added that the bank also plans to support year-round farming through irrigation financing and irrigation-as-a-service initiatives to improve productivity and farmers’ incomes beyond the rainy season.
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The BOA chief urged beneficiaries to utilise the inputs strictly for farming, avoid diversion or resale, and work closely with extension officers to maximise productivity and ensure prompt repayment of the loans.
Also speaking, the Minister of Agriculture and Food Security, Senator Abubakar Kyari, reaffirmed the Federal Government’s commitment to addressing food inflation by increasing local food production rather than relying on imports.
Kyari said food affordability is determined largely by supply and demand, noting that expanding production through timely access to quality farm inputs remains the administration’s central strategy.
He announced 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 mechanism to protect farmers from exploitation and ensure fair returns on their produce..
The minister observed that although nearly 90 per cent of Nigerian farmers cultivate less than one hectare of land, they contribute about 85 per cent of the country’s food production, making investment in smallholder farmers essential to achieving national food security.
He expressed confidence that the combination of improved seeds, timely input distribution, weather-based advisory services, and guaranteed pricing would significantly increase food production while reducing the cost of food across the country.
In his remarks, the Group Managing Director of Arzikin Noma Africa, Adeoluwa Adeshola, stressed that the long-term success of the programme would depend on sustained private-sector participation and strict compliance with loan repayment by beneficiaries.
He said government should continue to provide policy direction and funding support, while implementation should remain private-sector driven because of its closer relationship with farmers and better understanding of local agricultural value chains…
Adeshola noted that the revolving nature of the financing scheme would allow more farmers to benefit in subsequent farming seasons, adding that traditional rulers, community leaders, and security agencies had pledged to support the programme by encouraging beneficiaries to repay their loans after harvest.
He expressed optimism that sustained investment in smallholder agriculture would improve rural livelihoods, reduce food inflation, and position Nigeria as a leading agricultural producer and exporter in Africa.
