The Bank of Agriculture (BOA) has entered into a $1 billion financing agreement with the African Export-Import Bank (Afreximbank) to support Nigeria’s smallholder farmers.
The signing took place at the Intra-African Trade Fair (IATF) 2025 in Algiers, Algeria, where BOA Managing Director, Mr. Ayo Sotinrin, and Mrs. Kanayo Awani, Executive Vice President for Intra-African Trade and Export Development at Afreximbank, formalised the pact.
A statement from Maikenti Akila, Senior Manager and Head of Corporate Communication at BOA, confirmed the development on Tuesday. The statement explained that the deal was concluded under the leadership of Afreximbank President, Prof. Benedict Oramah, who has been instrumental in pushing for stronger agricultural value chains and improved intra-African trade.
According to BOA, the financing will establish a National Smallholder Farmers’ Fund aimed at closing major gaps that limit access to credit for farmers, who represent almost 95 percent of Nigeria’s agricultural sector. The initiative is structured to deliver blended finance solutions that will make agricultural loans more affordable.
The funding will enable farmers to access loans for seeds, fertilisers, agrochemicals, and mechanised services, which are essential for improving productivity and yields. It will also be used to build capacity in storage, aggregation, and logistics, helping to reduce post-harvest losses that have long affected the sector.
Another key focus is the creation of structured market linkages, which will connect farmers directly to buyers, processors, and exporters, ensuring better returns.
Speaking at the signing, Mr. Sotinrin said, “This deal represents a bold step toward building a sustainable future. It provides smallholder farmers with the resources they need to thrive, contributing significantly to national food security and economic growth.”
He further stated that the partnership aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which places food security and farmer empowerment at the centre of strategies to boost Nigeria’s economy.