The Bank of Agriculture (BOA) and the African Export-Import Bank (Afreximbank) have signed a $1 billion financing agreement to support Nigeria’s smallholder farmers and strengthen the country’s agricultural value chains.

The deal, signed at the ongoing Intra-African Trade Fair (IATF) 2025 in Algiers, Algeria, is expected to ease funding challenges facing farmers who form the backbone of Nigeria’s agricultural sector.

BOA Managing Director, Mr. Ayo Sotinrin, formalised the pact with Mrs. Kanayo Awani, Afreximbank’s Executive Vice President for Intra-African Trade and Export Development. 

The signing was witnessed under the leadership of Afreximbank President Prof. Benedict Oramah, who has been a strong advocate for strengthening Africa’s agricultural value chains and intra-African trade.

According to a statement issued by BOA’s Head of Corporate Communication, Maikenti Akila, the $1 billion facility will establish a National Smallholder Farmers’ Fund. 

The fund is designed to provide affordable credit and blended finance solutions enabling farmers to access seeds, fertilisers, agrochemicals, and mechanised services to improve productivity.

It will also support investments in storage, aggregation, and logistics infrastructure, reducing post-harvest losses and creating structured market linkages to connect farmers directly with buyers, processors, and exporters.

“This deal represents a bold step toward building a sustainable future. It provides smallholder farmers with the resources they need to thrive, contributing significantly to national food security and economic growth,” Sotinrin said.

Source: This Day

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