Nigeria’s agricultural sector is set for a significant boost in 2025, following President Bola Ahmed Tinubu’s approval of N1.5 trillion for the Bank of Agriculture to finance production. Minister of Agriculture and Food Security, Sen. Abubakar Kyari, described the allocation as an unprecedented move that could transform the industry.
Kyari, who announced the development while receiving a delegation from the European Bank for Reconstruction and Development (EBRD) in Abuja, said the funds—equivalent to about $1 billion—would provide critical financing for farmers and agribusinesses. He also noted that the Bank of Industry would receive N500 billion (about $300 million) to support agricultural processing and related enterprises.
“We’ve identified agriculture as a priority in the financial sector and will create dedicated agri-financing facilities to encourage banks to take more risks,” Kyari stated. He emphasized that this initiative would also include capacity building at both banking and borrower levels to enhance employment, food security, and financial inclusion.
He urged the European Bank to invest significantly in Nigeria’s agricultural sector, particularly in addressing post-harvest losses, irrigation challenges, and low yields.
In response, EBRD’s Managing Director for Sub-Saharan Africa, Dr. Heike Harmgart, highlighted the bank’s commitment to supporting Nigeria’s food security and economic growth. She announced plans to collaborate with local banks to develop agricultural financing products and revealed that EBRD would soon open an office in Lagos.
“We are looking to hire talented Nigerians and understand the government’s priorities as we prepare to present Nigeria as an investment destination at our annual meeting in May,” Harmgart said.
The development signals increased international interest in Nigeria’s agricultural sector, with potential benefits for farmers, agribusinesses, and the broader economy.
