Federal Government Approves ₦550 Billion Bank of Agriculture Fund to Support Farmers
The Federal Government of Nigeria has approved ₦550 billion for the Bank of Agriculture (BoA) to support smallholder farmers and implement a Guaranteed Minimum Price (GMP) Programme aimed at stabilising food prices across the country.
Breakdown of the Funding:
- ₦250 billion will finance smallholder farmers through technology-driven agricultural financing systems.
- ₦300 billion will support the Guaranteed Minimum Price (GMP) Programme, enabling the Bank of Agriculture to purchase farm produce during harvest and release it into the market when necessary to help stabilise prices and reduce food inflation.
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According to Ayotunde Sotinrin, Managing Director of the Bank of Agriculture, financing will be channelled through aggregation companies such as AFEX, ThriveAgric, and Arziki Noma, rather than directly to individual farmers.
This approach is expected to improve financing efficiency, strengthen agricultural value chains, and reduce the risk of loan defaults.
Who Could Benefit?
- Smallholder farmers
- Agricultural cooperatives
- Agribusinesses
- Farm produce aggregators
Farmers and agribusiness operators should monitor official announcements from the Bank of Agriculture and participating aggregation companies for updates on eligibility requirements, application procedures, and access to financing opportunities.