Nigeria launches financing scheme to more than double grain output

Nigeria is launching a major initiative to significantly increase its grain output, aiming to more than double production from the current 11 million tonnes to 25 million tonnes annually. The federal government, in partnership with the Bank of Agriculture (BOA), unveiled the "Renewed Hope Smallholder Agricultural Financing Programme" on Friday in Zaria, Kaduna State.

The program's primary goals are to strengthen national food security, combat rising food prices, and boost rural incomes. It is designed to offer affordable financing, improved farm inputs, and essential extension support to millions of smallholder farmers across the country. A key feature is the promotion of sustainable agricultural production through a revolving credit model.

According to BOA Managing Director Mr. Ayodeji Oludare-Sotinrin, the initiative will provide subsidized fertilizers, certified hybrid seeds, and other critical agricultural inputs. These will be offered through a single-digit-interest financing facility, specifically BOA's nine percent lending scheme. This approach ensures affordability for farmers while maintaining the program's long-term sustainability, distinguishing it from previous grant-reliant programs.

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the programme would provide subsidised fertilisers, certified hybrid seeds and other critical agricultural inputs through a single-digit-interest financing facility.

In its pilot phase, the program plans to reach approximately 500,000 farmers this season, with ambitious expansion plans to cover two million farmers next year and scale up to five million nationwide. Oludare-Sotinrin projects that if five million farmers each achieve an average yield of five tonnes per hectare, Nigeria could meet its domestic demand, create export opportunities, reduce food import dependency, stabilize prices, and foster job creation in rural communities.

BOA is also developing irrigation financing and "irrigation-as-a-service" initiatives to support year-round farming and reduce reliance on rain-fed agriculture. Beneficiaries are urged to use inputs strictly for farming, comply with extension guidelines, and ensure timely loan repayment to sustain the revolving financing scheme. The Minister of Agriculture and Food Security, Senator Abubakar Kyari, reaffirmed the federal government's commitment to the agricultural sector.

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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, enough to meet domestic demand and create export opportunities.