ABUJA — The Federal Government has announced a fresh N250 billion intervention facility aimed at transforming Nigeria’s agricultural landscape. Agriculture Minister Abubakar Kyari revealed that the funding is strategically designed to drive mechanization, enhance food production, and provide a financial safety net for the nation’s farmers.
The initiative marks a significant step in the administration’s “Renewed Hope” agenda, focusing on wealth creation and the modernization of the primary sector.
A Multi-Agency Approach to Risk and Finance
To ensure the effective deployment of these funds, the government is integrating three core institutions to provide a comprehensive support system:
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Nigerian Agricultural Insurance Corporation (NAIC): Tasked with risk protection. Notably, NAIC has already shielded over 199,000 farmers in the last two years, covering risks valued at approximately N700 billion.
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Bank of Agriculture (BOA): Acting as the primary vehicle for affordable credit and financial access.
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Nigeria Agricultural Quarantine Service (NAQS): Ensuring regulatory oversight and maintaining quality standards for exports.
Empowering the Smallholder Majority
A central pillar of the new funding is the National Smallholder Farmers Fund, personally approved by President Bola Ahmed Tinubu. Given that small-scale farmers account for over 90% of Nigeria’s agricultural output, the fund aims to remove long-standing barriers to equipment, high-quality seeds, and fertilizers.
Recent Successes in the Field:
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Fertilizer Distribution: Over 1.9 million bags have already reached nearly one million farmers nationwide.
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Seed Development: A massive project is underway to distribute 40 million cocoa seedlings to revitalize the plantation economy.
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Global Partnerships: This domestic funding complements a $1 billion intervention secured in late 2025 via the African Export-Import Bank (Afreximbank).
“This grant is about more than just money; it’s about livelihoods,” Kyari stated. “We are focusing on tools, transparency, and the long-term sustainability of the Nigerian farmer.”
Support for Vulnerable Populations
In a parallel move toward economic inclusion, the Bank of Agriculture recently finalized a $200 million Livelihood Support Fund in collaboration with the International Organization for Migration (IOM). Signed by CEO Ayo Sotinrin and IOM’s Ugochi Daniels, this dedicated fund is specifically earmarked to build resilience among displaced persons and migrants, integrating them into the national agricultural value chain.
Through strengthened regulatory frameworks and increased transparency in the supply chain, the Ministry of Agriculture expects these combined investments to significantly lower food prices and boost the country’s GDP by the end of the 2026 harvest cycle.
