Nigeria Aims to Boost Grain Production with BOA's New Financing Programme

In a bid to enhance food security and reduce reliance on imports, the federal government has partnered with the Bank of Agriculture to introduce the Renewed Hope Smallholder Agricultural Financing Programme. This initiative, launched in Zaria, Kaduna State, seeks to more than double Nigeria's annual grain production from approximately 11 million tonnes to 25 million tonnes. The programme is designed to provide affordable financing options, improved farm inputs, and extension support to millions of smallholder farmers, thereby promoting sustainable agricultural practices through a revolving credit model. According to the Managing Director of BOA, Mr. Ayodeji Oludare-Sotinrin, the programme will offer subsidised fertilisers, certified hybrid seeds, and other essential agricultural inputs through a single-digit-interest financing facility. Unlike previous intervention programmes that relied heavily on grants, the inputs will be financed under the bank's nine per cent lending scheme, making them more affordable for farmers while ensuring the long-term sustainability of the programme. Oludare-Sotinrin explained that the initiative is aimed at raising farm productivity and strengthening national food security. The BOA has selected 20 farm aggregators from over 1,240 applicants to support participating farmers during the pilot phase. The first phase of the programme is expected to reach about 500,000 farmers in the current farming season, with plans to expand coverage to two million farmers next year and eventually scale up to five million nationwide. If five million farmers each cultivate one hectare and achieve an average yield of at least five tonnes per hectare, Nigeria could produce about 25 million tonnes of grain annually, meeting domestic demand and creating export opportunities. The expected increase in production would reduce the country's dependence on food imports, stabilise domestic food prices, improve food security, create jobs in rural communities, and support broader economic growth. The Minister of Agriculture and Food Security, Senator Abubakar Kyari, reaffirmed the federal government's commitment to addressing food inflation by increasing domestic agricultural production. Kyari stated that about two million farmers would benefit from the programme through registered farm aggregators, who would provide quality farm inputs, extension services, and a Guaranteed Minimum Price mechanism to shield farmers from exploitative market practices after harvest.