EU Allocates N320 Billion Credit Line to Support Nigerian Banks and Boost Agricultural Growth

The European Union (EU) has announced a major financial intervention aimed at strengthening Nigeria’s agricultural sector through a ₦320.5 billion (€190 million) credit line provided by the European Investment Bank (EIB). The facility is designed to support Nigerian commercial banks and financial institutions to increase lending capacity to farmers and agribusinesses nationwide.

EU Investment to Strengthen Agricultural Value Chains

According to a statement released by Bolaji Adebiyi, the special adviser on media to Atiku Bagudu, Nigeria’s Minister of Budget and Economic Planning, the credit line will focus on advancing sustainable agriculture and enhancing food production. The initiative was officially unveiled during a meeting between senior executives of the EIB and Nigerian government officials at the Global Gateway Forum in Brussels, Belgium.

Thourayya Tricki, Director of International Partnerships at the EIB, explained that the financial package reflects the EU’s commitment to developing Nigeria’s agricultural value chains, especially in high-demand sectors such as cocoa and dairy production. She noted that the facility aligns with ongoing efforts to promote climate-smart agriculture and boost the competitiveness of Nigeria’s agri-food products in international markets.

Credit Line and Technical Support for Nigerian Banks

The EU’s agricultural investment will be distributed through commercial banks and development finance institutions (DFIs) to enable easier access to credit for agribusiness owners, farmers, and cooperatives. In addition to the funding, the programme includes technical assistance to help financial institutions manage agricultural portfolios and support sustainable business growth.

Diedrick Zambon, Head of Sub-Saharan Africa Relations at the EIB, also participated in the meeting, emphasizing that the partnership is part of a broader plan to stimulate job creation and improve food security across Nigeria.

EU’s Additional €68 Million Support for Nigeria’s Health Sector

Beyond agriculture, the European Union has also provided an additional €68 million (approximately ₦114 billion) to strengthen vaccine manufacturing and the pharmaceutical industry in Nigeria. The funding includes €18 million in technical assistance grants and a €50 million credit facility to promote local vaccine production and enhance healthcare infrastructure.

Bolaji Onalaja, special assistant to the Minister of Budget, and Benjamin Galadima, focal officer of the EU unit, said the support aligns with President Bola Tinubu’s Renewed Hope Agenda, which prioritizes economic diversification, innovation, and sustainable development.

Nigeria’s National Development Plan (2026–2030)

During the discussions, the Nigerian delegation outlined the framework for the upcoming National Development Plan (2026–2030). The plan seeks to attract more foreign investment and empower rural communities through the ward-based development programme, focusing on agriculture, infrastructure, and human capital development.

The team also held high-level sessions with the Directorate of International Partnerships (INTPA) and the European Bank for Reconstruction and Development (EBRD) to explore additional areas of collaboration.

Global Gateway Forum: EU’s New Investment Vision for Africa

On behalf of Minister Bagudu, who was on assignment in Vienna, the Nigerian representatives expressed appreciation to Gauthier Mignot, Head of the EU Delegation to Nigeria and ECOWAS, for facilitating Nigeria’s participation at the 2025 Global Gateway Forum.

In her keynote address, Ursula von der Leyen, President of the European Commission, announced the expansion of the Global Gateway Investment Package to €400 billion, emphasizing the EU’s vision to enhance infrastructure, energy, and agricultural development in Africa and other partner regions.

She also revealed plans for a dedicated Investment Hub that will streamline project financing, improve transaction efficiency, and accelerate economic partnerships.

Boosting Nigeria’s Agricultural Economy Through EU Partnership

This partnership between the EU and Nigeria is expected to create broader economic opportunities across the agricultural landscape. With access to affordable financing, farmers and agribusinesses will be better positioned to invest in modern equipment, irrigation, and processing technologies, increasing productivity and export potential.

Financial analysts have described the credit line as a strategic step toward achieving Nigeria’s food security goals, reducing import dependence, and supporting the federal government’s long-term vision for sustainable economic growth.

Looking Ahead

The collaboration highlights a growing trend of international development finance institutions investing in Nigeria’s agrifood systems, which remain a key driver of employment and income generation.

As Nigeria moves toward implementing its 2026–2030 Development Plan, the EU’s support is expected to play a major role in boosting foreign direct investment (FDI), empowering local farmers, and strengthening the resilience of the agricultural value chain against climate and market challenges.