FG Approves N250bn Credit Scheme to Support Smallholder Farmers

The Federal Government has approved a N250 billion financing facility for the Bank of Agriculture to expand access to affordable credit for smallholder farmers across Nigeria.

Minister of Agriculture and Food Security, Abubakar Kyari, disclosed this during the Quarterly Citizens and Stakeholders Engagement Session held in Abuja on Friday. He said the facility will provide farmers with loans at a single-digit interest rate to help expand production, acquire equipment and improve farm productivity.

Kyari said the programme will involve key institutions including the Nigerian Agricultural Insurance Corporation, the Nigeria Agricultural Quarantine Service and the Bank of Agriculture to improve risk protection, regulatory oversight and access to finance in the sector.

He noted that the Nigerian Agricultural Insurance Corporation has provided insurance support to more than 199,000 farmers in the past two years, covering agricultural risks valued at about N700 billion.

The minister said the N250 billion facility is designed to strengthen agricultural productivity, improve food security and support farmers to adopt modern equipment and inputs.

Kyari also said the government has distributed more than 1.9 million bags of fertiliser to nearly one million farmers nationwide, while regulatory frameworks have been strengthened to improve transparency in the fertiliser supply chain.