The African Export-Import Bank (Afreximbank) and the Bank of Agriculture (BOA) have signed a $1 billion facility agreement to strengthen financial access for Nigerian smallholder farmers.
The deal, concluded yesterday at the fourth Intra-African Trade Fair (IATF) in Algiers, Algeria, is aimed at bridging long-standing financial gaps that limit productivity and growth in the agricultural sector.
The agreement was signed by BOA Chief Executive Officer, Ayo Sotinrin, and Afreximbank’s Executive Vice President for Intra-African Trade and Export Development, Kanayo Awani.
According to the institutions, the facility will target nearly 95 per cent of players in Nigeria’s agricultural value chain—most of whom are smallholder farmers who have remained underserved despite being responsible for the bulk of the country’s food production.
With the new financing arrangement, smallholder farmers will be able to access affordable credit for key agricultural needs. These include the purchase of inputs such as seeds, fertilisers, and agrochemicals, as well as access to mechanised farming services to boost yield and reduce labour inefficiencies.
The initiative also covers investments in storage and aggregation infrastructure to cut post-harvest losses, alongside support for processing activities that add value and improve competitiveness in both local and export markets.
Beyond production, the facility will help create structured market linkages, connecting farmers directly with buyers, processors, and exporters through more profitable and organised value chains.
