Bank of Agriculture, Afreximbank launch $1bn fund for Nigerian farmers
The deal was signed by BOA managing director/CEO Ayo Sotinrin and Afreximbank executive vice president for intra-African trade and export development, Kanayo Awani. It follows the approval of the National Food Security Fund by resident Bola Ahmed Tinubu, intended as a revolving matching fund in partnership with state governments.
"This is more than just a fund; it is a bold commitment to ensuring our nation’s food security," Sotinrin said. "By joining forces with Afreximbank, we are unlocking opportunities for smallholder farmers to move beyond subsistence farming into sustainable and profitable agribusiness."
Support for smallholder farmers
Nigeria’s smallholder farmers account for over 90% of the country’s agricultural output but often face limited access to finance, mechanisation, and structured markets. The fund will provide affordable credit for critical inputs, equipment, and market linkages to increase productivity and value addition.
"Smallholder farmers are an essential part of the agricultural value chain and represent important contributors to the growth of the agro-industry sector," Awani said. "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."
Mechanisms for funding
The agreement includes frameworks for loan guarantees from Afreximbank, which reduce credit risk, and currency swap arrangements to convert dollar funding into local currency for lending. These mechanisms are intended to facilitate easier access to international capital markets while protecting farmers from exchange rate risks.
The collaboration aligns with President Tinubu’s Renewed Hope Agenda and is part of wider efforts to accelerate land reform, empower youth and women in agriculture, and achieve national food sovereignty.
The fourth Intra-African Trade Fair drew over 112,000 participants and generated more than $48bn in trade deals. The event featured more than 2,100 exhibitors and participation from 132 countries, including heads of state, ministers, and industry leaders.