FG Targets 25 Million Tonnes Annual Grain Output Through New Farmers’ Financing Scheme
The Federal Government has launched a new agricultural financing programme aimed at increasing Nigeria’s annual grain output from 11 million tonnes to 25 million tonnes as part of efforts to strengthen food security, curb food inflation and boost agricultural productivity across the country.
The initiative, known as the Renewed Hope Smallholder Agricultural Financing Programme, is being implemented by the Bank of Agriculture (BOA) to provide smallholder farmers with affordable access to improved farm inputs, including subsidised fertilisers, certified hybrid seeds and other essential agricultural materials.
Speaking at the unveiling of the Renewed Hope Smallholder Support and Value Chain Fund organised by Arzikin Noma Africa in Zaria, the Managing Director of the Bank of Agriculture, Ayodele Sotinrin, said the programme was designed to improve crop yields and significantly increase national food production.
Sotinrin explained that the farm inputs would be financed through the bank’s single-digit lending facility at an interest rate of nine per cent, stressing that the support was not a grant but a loan designed to ensure the sustainability of the intervention while remaining affordable for farmers.
He disclosed that 20 farm aggregators were selected from more than 1,240 applicants for the pilot phase after an assessment of their technical and operational capacity to support farmers across participating states.
According to him, the first phase of the programme will benefit about 500,000 farmers during the current farming season. The number is expected to rise to two million next year before expanding to five million farmers nationwide.
Sotinrin said the target of producing 25 million tonnes of grains annually is achievable if five million farmers each cultivate one hectare of land and harvest at least five tonnes per hectare.
“That would result in about 25 million tonnes of food annually, sufficient to meet domestic demand, reduce dependence on food imports and create opportunities for agricultural exports,” he said.
He added that the Bank of Agriculture also plans to support all-year-round farming through irrigation financing and irrigation-as-a-service initiatives to improve productivity and increase farmers’ incomes beyond the rainy season.
The BOA chief urged beneficiaries to utilise the farm inputs strictly for agricultural purposes, avoid diversion or resale, and work closely with extension officers to maximise productivity and ensure prompt repayment of the loans.
Also speaking, the Minister of Agriculture and Food Security, Senator Abubakar Kyari, reaffirmed the Federal Government’s commitment to tackling food inflation by increasing local food production rather than relying on food imports.
Kyari said food affordability is largely determined by supply and demand, noting that expanding production through timely access to quality farm inputs remains a key strategy of the Tinubu administration.
He announced that about two million bags of agricultural inputs would be distributed through registered farm aggregators, who would also provide extension services and implement a Guaranteed Minimum Price mechanism to protect farmers from exploitation and ensure fair returns for their produce.
The minister observed that although nearly 90 per cent of Nigerian farmers cultivate less than one hectare of land, they account for about 85 per cent of the country’s food production, making investment in smallholder farmers critical to achieving national food security.
He expressed confidence that the combination of improved seeds, timely distribution of farm inputs, weather-based advisory services and guaranteed pricing would significantly increase food production while lowering food prices across the country.
In his remarks, the Group Managing Director of Arzikin Noma Africa, Adeoluwa Adeshola, stressed that the long-term success of the programme would depend on sustained private-sector participation and strict compliance with loan repayment by beneficiaries.
He said the government should continue to provide policy direction and financial support, while implementation should remain private sector-driven because of its closer relationship with farmers and better understanding of local agricultural value chains.
Adeshola noted that the revolving nature of the financing scheme would enable more farmers to benefit in subsequent farming seasons. He added that traditional rulers, community leaders and security agencies had pledged to support the programme by encouraging beneficiaries to repay their loans after harvest.
He expressed optimism that sustained investment in smallholder agriculture would improve rural livelihoods, reduce food inflation and position Nigeria as one of Africa’s leading agricultural producers and exporters.