The Federal Government has unveiled a new agricultural financing programme aimed at increasing Nigeria’s annual grain production from 11 million tonnes to 25 million tonnes, as part of efforts to strengthen food security, reduce food inflation and boost agricultural productivity across the country.
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 the Bank of Agriculture, Ayodele Sotinrin, said the programme is designed to improve crop yields and significantly increase national food production.
Sotinrin explained that the farm inputs would be financed through the bank’s single-digit lending facility at an interest rate of nine per cent, stressing that the intervention consists of affordable loans rather than grants to ensure the sustainability of the programme.
He disclosed that the bank selected 20 farm aggregators from more than 1,240 applicants for the pilot phase after evaluating their technical and operational capacity to support farmers across participating states.
According to him, the first phase of the initiative will benefit approximately 500,000 farmers during the current farming season before expanding to two million farmers next year and ultimately reaching five million farmers nationwide.
Sotinrin said the government’s target of producing 25 million tonnes of grain annually is achievable if five million farmers each cultivate one hectare of land and harvest at least five tonnes per hectare.
He noted that such production would be sufficient to meet domestic food demand, reduce dependence on food imports and create new opportunities for agricultural exports.
The BOA Managing Director added that the bank also plans to support year-round farming through irrigation financing and irrigation-as-a-service initiatives aimed at increasing productivity and improving farmers’ incomes beyond the rainy season.
He urged beneficiaries to use the farm inputs strictly for agricultural purposes, avoid diversion or resale and work closely with extension officers to maximise productivity while ensuring prompt repayment of their loans.
Also speaking, the Minister of Agriculture and Food Security, Senator Abubakar Kyari, reaffirmed the Federal Government’s commitment to tackling food inflation by increasing local food production rather than relying on imports.
Kyari said food affordability is largely determined by supply and demand, stressing that expanding production through timely access to quality farm inputs remains a central strategy of the Tinubu administration.
The minister 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 for their produce.
He 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 investment in smallholder farmers critical to achieving national food security.
Kyari expressed confidence that improved seeds, timely input distribution, weather-based advisory services and guaranteed pricing would significantly boost food production while helping to reduce food prices across Nigeria.
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In his remarks, the Group Managing Director of Arzikin Noma Africa, Adeoluwa Adeshola, said the long-term success of the programme would depend on sustained private-sector participation and strict compliance with loan repayment by beneficiaries.
He argued that while government should continue to provide policy direction and funding support, implementation should remain largely private-sector driven because of its stronger relationship with farmers and deeper understanding of local agricultural value chains.
Adeshola further noted that the revolving nature of the financing scheme would enable more farmers to benefit in subsequent farming seasons, adding that traditional rulers, community leaders and security agencies have pledged to support the initiative 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 one of Africa’s leading agricultural producers and exporters.