The European Union has approved a €190 million (₦320.5 billion) credit line to expand access to finance for Nigerian farmers and agribusinesses.
The fund, which is to be disbursed through the European Investment Bank (EIB), seeksto strengthen agricultural value chains, improve food security, and promote climate-smart farming.
The financing agreement was unveiled during a bilateral meeting between senior EIB executives and a delegation from Nigeria’s Federal Ministry of Budget and Economic Planning on the sidelines of the Global Gateway Forum recently held in Brussels, Belgium.
According to Thourayya Tricki, the EIB’s Director for International Partnerships, the initiative demonstrates the EU’s commitment to supporting Nigeria’s economic diversification, particularly through sustainable agriculture and value-chain development.
“This credit line is part of our continued effort to strengthen Nigeria’s agricultural value chains, especially in cocoa and dairy,” Tricki said.
“The investment package will not only expand access to finance but also promote sustainability and competitiveness in Nigeria’s agri-food products.”
Tricki, who was joined by Diedrick Zambon, EIB’s Head of Sub-Saharan Africa Relations, explained that the facility includes both credit and technical assistance components.
These are designed to help de-risk agricultural lending, enhance institutional capacity, and encourage long-term financing for agricultural enterprises.
The new EU-backed funding is expected to stimulate private sector participation in agriculture, providing commercial banks and development finance institutions with greater confidence to support smallholder farmers and agri-based businesses.
Nigeria already benefits from several EU-supported initiatives, including an €18 million technical assistance grant to strengthen vaccine production and a €50 million credit facility to boost the pharmaceutical industry.
Representing Nigeria, Bolaji Onalaja, Special Assistant to the Minister of Budget and Economic Planning, reaffirmed the government’s commitment to implementing reforms under President Bola Tinubu’s Renewed Hope Agenda.
He noted that the upcoming National Development Plan (2026–2030) and the Ward-Based Development Programme will create an enabling environment for investment and ensure growth reaches communities at the grassroots.
“Our government is determined to create an enabling environment for investment that supports inclusive growth and sustainable livelihoods,” Onalaja said.
The Nigerian delegation also held discussions with officials from the Directorate of International Partnerships and the European Bank for Reconstruction and Development on potential collaboration in green infrastructure, renewable energy, and industrial development.
The agreement forms part of the EU’s Global Gateway Strategy, a flagship investment platform aimed at mobilising public and private financing for sustainable development across partner countries.
In her keynote address, Ursula von der Leyen, President of the European Commission, reaffirmed the EU’s dedication to building “mutually beneficial partnerships based on trust and shared prosperity.”
She announced that the Global Gateway Investment Package is being expanded to €400 billion, with a dedicated Investment Hub to accelerate project delivery, especially in Africa.
Source: Punch News
Image Credit: Corporate Finance Institute
