The Bank of Agriculture (BOA) and the African Export-Import Bank (Afreximbank) have signed a landmark agreement to mobilise up to US$1 billion in direct financial support for Nigeria’s smallholder farmers and the broader agricultural value chain.
The deal, finalised during the recently concluded Intra-African Trade Fair (IATF 2025) in Algiers, Algeria, brings together BOA’s national mandate and Afreximbank’s regional financing capacity to expand affordable credit, mechanisation, and structured market access for farmers. It follows the approval by President Bola Ahmed Tinubu for the creation of the National Food Security Fund, a revolving matching fund in partnership with state governments.
Speaking at the signing, BOA Managing Director/CEO, Mr. Ayo Sotinrin, described the agreement as a decisive intervention. “This is more than just a fund; it is a bold commitment to ensuring our nation’s food security,” he said. “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, Mrs. Kanayo Awani, stressed the importance of the initiative in tackling systemic gaps. “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,” she said.
“The Fund will provide critical liquidity and assuage the hardship faced by the smallholder farmers by extending crucial financing access to the previously underserved group.”
The collaboration outlines two key mechanisms: Afreximbank guarantees to reduce loan risks and extend credit to underserved farmers, and currency swap arrangements to convert dollar-denominated funding into local currency for BOA’s onward lending. These measures are expected to broaden access to international capital while insulating farmers from exchange rate volatility.
Nigeria’s smallholder farmers, who contribute over 90% of the country’s agricultural output, face persistent challenges with financing, technology adoption, and market access. By addressing these gaps, the fund is expected to boost productivity, stimulate processing and value addition, and strengthen integration into national and continental markets.
The agreement, aligned with President Tinubu’s Renewed Hope Agenda, is framed as a step toward achieving food sovereignty and empowering farmers as engines of growth.
The fourth edition of IATF 2025, where the deal was signed, exceeded projections with over 112,000 participants and US$48 billion in trade deals. Organised by Afreximbank, the African Union Commission, and the AfCFTA Secretariat, the fair brought together 2,100 exhibitors and 20 Heads of State alongside business leaders from 132 countries.
