• BOA secures $1B Afreximbank deal to fund smallholder farmers
• Funds target inputs, mechanization, and food logistics upgrades
• Nigeria’s agriculture loan share remains under 5% of total credit

Nigeria's Bank of Agriculture (BOA) has secured a $1 billion financing agreement with the African Export-Import Bank (Afreximbank). The deal was finalized on September 9 during the fourth Intra-African Trade Fair (IATF 2025) in Algiers, according to Maikenti Akila, BOA's Head of Corporate Communications.

The funds will be used to establish a National Fund for Smallholder Farmers, designed to improve farmers' access to bank loans. These loans will help them purchase agricultural inputs such as seeds, fertilizers, and agrochemicals, as well as acquire mechanized services to boost efficiency and crop yields. The money will also support investments in storage, aggregation, and food logistics infrastructure.

The financing is a strategic move to address a major funding deficit in Nigeria's agricultural sector. A 2022 study by agribusiness consulting firm Agri-Logic estimated this gap at nearly $183 billion.

In June, Abubakar Kyari, Nigeria's Minister of Agriculture and Food Security, announced the government's intention to allocate 1.5 trillion naira ($996.3 million) to recapitalize the BOA. In Africa's most populous country, the agricultural sector still accounts for less than 5% of the total loan portfolio to the economy.

Stéphanas Assocle