• Nigeria to provide 1.5 trillion naira ($968 million) to recapitalize the Bank of Agriculture
• Goal is to improve farmers’ access to credit and boost food production
• 2025 agriculture budget increased by 123% to tackle food insecurity

Nigeria will inject 1.5 trillion naira, about $968 million, into the Bank of Agriculture (BoA) as part of a major recapitalization plan aimed at supporting farmers and increasing food production.

The announcement was made on June 21 by Abubakar Kyari, Nigeria’s Minister of Agriculture and Food Security. He explained that the funds are expected to help farmers gain better access to agricultural loans and other financial services.

The broader objective is to encourage investment in farming equipment and production, with the hope of boosting the country’s food supply. Despite Nigeria’s large agricultural potential, the sector struggles to attract bank financing.

Since 2015, Nigeria’s Central Bank has operated the Anchor Borrowers’ Program, designed to expand lending to farmers. However, the agricultural sector still receives less than 5% of total bank loans in the country.

In addition to the BoA recapitalization, Kyari said the government will also allocate 200 billion naira to strengthen food security and improve farmers’ skills nationwide.

Massive Funding Boost in 2025

This new support is part of a larger effort to tackle food insecurity, reflected in Nigeria’s 2025 budget. The government has approved a record 2.23 trillion naira ($1.4 billion) for agriculture next year. That represents a 123% increase compared to last year’s 996 billion naira budget and is over five times more than the 344.6 billion naira allocated in 2023.

While this increase is significant, agriculture’s share of public spending in Nigeria still falls short of the 10% target set by the Malabo Declaration, standing at just 4.1%.

Nigeria faces a severe food security crisis. According to the United Nations, over 30 million people in the country are currently suffering from acute food insecurity, the highest number in the world.

Food shortages persist due to limited farm investments, low levels of mechanization, and ongoing insecurity in key agricultural regions in northern Nigeria. Violence and instability have disrupted farming activities and made it harder to transport food to major cities in the south, driving up prices. Nigerian families already spend around 50% of their income on food.

Data from Nigeria’s National Agricultural Extension and Research Liaison Service (NAERLS) shows that 2.1 million hectares of farmland in northern Nigeria remain unused because of insecurity. Nearly half of this land is located in the states of Borno, Niger, Plateau, Katsina, Gombe, Bauchi, Kogi, Kaduna, Oyo, and Taraba.