FG, BoA, the firm target 25 million tonnes grain output

The Federal Government and the Bank of Agriculture (BOA) and an agricultural firm, Arzikin Noma, are set to launch a nationwide agricultural financing programme aimed at boosting grain production and empowering smallholder farmers.

The initiative targets increasing annual grain output to 25 million metric tonnes, more than double the current 11 million tonnes.

The programme, dubbed the Renewed Hope Smallholder Support and Value Chain Fund, will provide accessible financing, improved agricultural inputs, and technical support to two million smallholder farmers in its initial phase, starting with 500,000 farmers this season.

The partnership aims to distribute over 10 million bags of subsidised fertilisers, certified hybrid seeds, and agrochemicals through a single-digit interest financing arrangement.

“Private-sector-led execution is the linchpin for achieving true agricultural resilience in Nigeria,” said Adeoluwa Adeshola, group managing director of Arzikin Noma Africa.

“The best collaboration anywhere in the world is when government provides policy and the private sector delivers implementation. With this partnership, Nigeria can achieve food sovereignty and become a leading exporter of agricultural produce,” Adeshola stated.

Adeshola explained that the inputs are structured as a revolving credit system to guarantee long-term operational sustainability. He noted that beneficiaries are expected to repay the financing after harvest, which will allow the fund to cycle back and empower even more farmers in subsequent seasons.

The initiative is expected to increase food production, reduce food inflation, and position Nigeria as a leading agricultural hub in Africa.

The programme has garnered support from traditional rulers, community leaders, and security agencies, who have pledged to encourage beneficiaries to honour their repayment obligations.

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Abubakar Kyari, minister of Agriculture and Food Security, underscored the significance of smallholder farmers, who make up 85 percent of domestic food production despite working on plots smaller than one hectare.

He explained that the Tinubu administration primary strategy rests on expanding domestic output rather than importing food. “Food affordability is largely determined by supply and demand. Expanding production through timely access to quality farm inputs remains a key strategy of the Tinubu administration,” Kyari said.

The minister added that approximately two million bags of agricultural inputs would be distributed directly through registered farm aggregators, who will double as extension service providers. Additionally, the government will implement a Guaranteed Minimum Price (GMP) mechanism to insulate farmers from market volatility and ensure they receive fair prices for their produce post-harvest.

On his part, Ayodeji Oludare Sotinrin, managing director of the Bank of Agriculture, confirmed that the inputs are being rolled out under the bank’s flexible nine percent lending facility to maintain economic viability. To ensure quality control and maximum yield, BOA carefully vetted and selected 20 specialist farm aggregators out of 1,240 applicants for the pilot phase.

Sotinrin highlighted the massive macroeconomic math driving the partnership: if five million smallholder farmers cultivate one hectare each and hit a baseline yield of five tonnes per hectare, Nigeria will comfortably hit its 25-million-tonne grain target. This volume would comfortably satisfy local consumption, eliminate import dependency, and unlock immense export potential.

Looking ahead, Sotinrin announced that the BOA and Arzikin Noma alliance will soon introduce irrigation financing and “irrigation-as-a-service” options to support dry-season farming and eliminate seasonal income gaps.

He strictly cautioned the beneficiaries against compromising the project: “Utilise the inputs strictly for farming, avoid diversion or resale, and follow the guidance of extension officers to maximise productivity and ensure prompt repayment of the loans.”