The African Export-Import Bank (Afreximbank) and Nigeria’s Bank of Agriculture (BoA) have signed a landmark US $1 billion agreement to provide vital financial support to smallholder farmers and small and medium-sized enterprises (SMEs) in Nigeria. The deal was concluded during the ongoing Intra-African Trade Fair 2025 (IATF2025) in Algiers, Algeria, and is being described as a major step towards boosting food security and driving inclusive economic growth in Africa’s largest economy.
Nigeria’s agriculture sector has long been recognised as a key driver of national development, but persistent challenges such as limited access to credit, outdated farming practices, and weak infrastructure have slowed progress. SMEs, which make up a significant share of the country’s business landscape, also face constant barriers in accessing affordable finance to grow and compete. This new initiative seeks to bridge those gaps by unlocking funding opportunities that will enable farmers to improve productivity, expand market access, and strengthen their resilience in the face of economic and climate-related challenges.
The facility will also help SMEs scale their operations, invest in innovation, and expand into regional and continental markets under the African Continental Free Trade Area (AfCFTA). For Nigeria, where agriculture employs a large share of the population and SMEs contribute significantly to GDP, the fund represents an opportunity to tackle unemployment, strengthen value chains, and reduce the country’s dependence on imports.
Analysts note that the deal aligns with Afreximbank’s broader strategy of supporting trade and economic diversification across the continent. By partnering with the Bank of Agriculture, which has deep grassroots reach, the initiative is expected to directly impact rural communities and small business owners who often remain excluded from mainstream financial systems.
In a separate but related development at IATF2025, Afreximbank signed a Hosting Agreement with the Government of Cross River State for the 6th African Sub-Sovereign Governments Network (AfSNET) Investment Conference, which will take place in Calabar in 2026.
AfSNET, launched in 2021 in partnership with the AfCFTA Secretariat, was created to empower sub-sovereign governments, states, regions, and municipalities to play a more active role in Africa’s development agenda. The platform provides an avenue for local governments to attract investment, champion regional projects, and complement national efforts at integration and growth.
The 2026 edition in Calabar is expected to bring together governors, mayors, investors, and development partners to explore opportunities in sectors such as agriculture, manufacturing, infrastructure, and services. Organisers are planning a robust programme that will include plenary sessions, exhibitions, B2B engagements, and cultural showcases.
Hosting the event offers Cross River State the chance to position itself as a gateway to West Africa, especially given its strategic location and existing investments in infrastructure such as deep seaports and industrial zones. Past AfSNET conferences have already unlocked tangible projects, including industrial park development in Ogun State, feasibility studies for advanced manufacturing in Kenya, and expansion of Cross River’s seaport facilities.
The dual announcements at IATF2025 highlight Afreximbank’s role in linking financing, trade promotion, and investment facilitation across multiple levels of governance. For Nigeria, the combination of a $1 billion SME and farmer-support fund with the opportunity to host AfSNET 2026 reflects a deliberate effort to strengthen both national and sub-national capacity for economic transformation.
