The Federal Government and the Bank of Agriculture, BOA, have launched the Renewed Hope Smallholder Agricultural Financing Programme aimed at increasing Nigeria’s annual grain production from about 11 million tonnes to 25 million tonnes.
The Managing Director of BOA, Mr Ayodeji Oludare-Sotinrin, said the initiative would improve food production, address food insecurity, reduce rising food prices and expand smallholder farmers’ access to affordable agricultural financing nationwide.
Oludare-Sotinrin disclosed this on Friday at the unveiling of the Renewed Hope Smallholder Support and Value Chain Fund organized by Arzikin Noma Africa in Zaria.
He said the programme would provide farmers with subsidized fertilizers, certified hybrid seeds and other essential agricultural inputs through a single-digit interest financing arrangement. “This is designed to increase productivity and strengthen national food security sustainably,” he said.
The BOA managing director clarified that the inputs were not grants but were financed under the bank’s nine per cent lending facility, ensuring affordability for farmers while maintaining the sustainability of the intervention.
According to him, the bank selected 20 farm aggregators from over 1,240 applicants after assessing their technical capacity and operational ability to support farmers during the pilot phase.
He said the first phase of the programme would support about 500,000 farmers during the current farming season, with plans to expand coverage to two million farmers next year and eventually reach five million farmers nationwide.
Oludare-Sotinrin explained that if five million farmers cultivate one hectare each and achieve a minimum yield of five tonnes per hectare, Nigeria could produce about 25 million tonnes of grains annually for domestic consumption and export.
He said the expected increase in output would reduce dependence on food imports, stabilize food prices, create employment opportunities in rural communities and strengthen Nigeria’s position in agricultural exports.
The BOA chief executive also announced plans to introduce irrigation financing and irrigation as a service initiative to promote year-round farming, improve productivity and increase farmers’ incomes.
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He urged beneficiaries to use the inputs strictly for agricultural purposes, avoid diversion or resale, follow extension officers’ guidance and repay the financing promptly to sustain the revolving scheme.
Earlier, the Minister of Agriculture and Food Security, Senator Abubakar Kyari, said the Federal Government was focused on tackling food inflation by boosting local production rather than relying on imports.
Kyari said food affordability was largely influenced by supply and demand, adding that improving access to quality inputs remained a major priority of the Tinubu administration’s food security strategy.
He disclosed that about two million farmers would benefit from the programme through registered farm aggregators providing quality inputs, extension services and a Guaranteed Minimum Price mechanism to protect farmers from unfair market conditions after harvest.
“Although nearly 90 per cent of Nigerian farmers cultivate less than one hectare, they produce about 85 per cent of the country’s food, making sustained support for smallholder farmers essential to food security,” he said.
The minister expressed confidence that improved seeds, timely input distribution, weather-based advisory services and guaranteed pricing would increase agricultural output, reduce food costs and improve farmers’ livelihoods.
Also speaking, the Group Managing Director of Arzikin Noma Africa, Mr Adeoluwa Adeshola, stressed the importance of private sector participation and timely loan repayment in ensuring the success of the programme.
Adeshola said while government should provide policy direction and financial support, private sector players were better positioned to drive implementation due to their understanding of agricultural value chains and close relationship with farmers.
He explained that beneficiaries would repay the financing after harvest, allowing the revolving fund to support more farmers in subsequent farming seasons.
The Arzikin Noma Africa chief executive added that traditional rulers, community leaders, security agencies and other stakeholders had pledged their support by encouraging beneficiaries to fulfil repayment obligations.
“The sustained investment in smallholder agriculture and prompt loan repayment will boost food production, reduce inflation, improve rural livelihoods and strengthen Nigeria’s position as a major agricultural producer and exporter in Africa,” he said.
NAN
