BOA Secures $1bn Fund to Boost Smallholder Farmers and Transform Agriculture

Nigeria’s agricultural sector has received a major lifeline as the Bank of Agriculture (BOA), in partnership with the African Export-Import Bank (Afreximbank), secured a $1 billion intervention fund to support smallholder farmers and strengthen the country’s food systems.

Source: Business Day

The move comes on the heels of President Bola Tinubu’s recent approval of the National Food Security Fund and is seen as a bold step toward addressing long-standing challenges in the sector. For decades, smallholder farmers—responsible for more than 90 percent of Nigeria’s agricultural output—have struggled with poor access to finance, modern tools, and reliable markets. The new fund is designed to change that story.

Ayo Sotinrin, Managing Director and CEO of BOA, described the initiative as a revolving matching facility developed with state governments to deliver affordable credit, mechanized farming support, and improved market access. “This fund will help farmers overcome financial barriers that have kept productivity and profitability low for too long,” he said.

Kanayo Awani, Executive Vice President for Intra-Africa Trade and Export Development at Afreximbank, emphasized the central role of smallholder farmers in driving Nigeria’s growth and food security. She noted that the partnership reflects a shared commitment to unlocking the sector’s full potential and lifting rural communities out of poverty.

To strengthen the impact, the collaboration introduces a guarantee framework that allows Afreximbank to back loans issued by BOA, significantly reducing credit risks. It also includes a currency swap arrangement, which converts dollar-based funds into local currency to shield farmers from exchange rate volatility and make lending more accessible.

Both BOA and Afreximbank believe the National Smallholder Farmers Fund could reshape Nigeria’s agricultural landscape. By breaking structural barriers and opening new opportunities for rural farmers, the initiative aims to secure the country’s food future while driving inclusive economic growth.