Bank of Agriculture Lands $1B Afreximbank Deal to Supercharge Nigeria's Smallholder Farmers

Nigeria's agricultural backbone is getting a monumental lift, as the Bank of Agriculture (BOA) inks a landmark $1 billion financing pact with the African Export-Import Bank (Afreximbank) to empower smallholder farmers and fortify the nation's food security.

Signed at the Intra-African Trade Fair (IATF) 2025 in Algiers, Algeria, the agreement unites BOA's grassroots expertise with Afreximbank's trade-focused firepower to mobilize funds for the newly established National Smallholder Farmers Fund. This revolving initiative, greenlit by President Bola Ahmed Tinubu, targets the systemic credit crunch plaguing over 90% of Nigeria's agricultural output, which comes from these vital producers who often battle limited access to affordable loans, tech upgrades, and market channels.

The capital will fuel blended finance solutions, dishing out low-cost credit for essentials like seeds, fertilizers, agrochemicals, and mechanized tools to ramp up yields and efficiency. It extends to bolstering storage facilities, aggregation hubs, and logistics networks, while forging stronger links from farm to market—spanning primary production, processing, and export. Smallholders, who make up nearly 95% of the value chain, stand to transition from subsistence struggles to thriving agribusinesses, potentially closing a staggering $183 billion funding gap in the sector and lifting productivity across the board.

"This is more than just a fund; it is a bold commitment to ensuring our nation’s food security," declared BOA's Managing Director/CEO, Ayo Sotinrin, at the signing. "By joining forces with Afreximbank, we are unlocking opportunities for smallholder farmers to move beyond subsistence farming into sustainable and profitable agribusiness."

Afreximbank's Executive Vice President for Intra-African Trade and Export Development, Kanayo Awani, hailed the collaboration as a catalyst for broader impact: "Smallholder farmers are an essential part of the agricultural value chain and represent important contributors to the growth of the agro-industry sector. By partnering with BOA to support the National Smallholder Farmers Fund, Afreximbank is supporting BOA to deliver greater impact in Nigeria’s quest for food security and economic development."

With agriculture's loan share hovering below 5% of Nigeria's total credit pool, this infusion arrives at a critical juncture, amid government plans to recapitalize BOA with 1.5 trillion naira ($996.3 million). It promises not only to enhance food self-sufficiency but also to spark rural jobs, curb imports, and position Nigeria as a continental agro-powerhouse in the face of climate and population pressures.