Federal Government Approves ₦250bn Single-Digit Loan for Smallholder Farmers

Vice President Kashim Shettima has directed the Presidential Food Systems Coordinating Unit (PFSCU) to fast-track the disbursement of the Federal Government’s ₦250 billion agriculture loan designed for smallholder farmers. The credit facility, to be disbursed through the Bank of Agriculture, will be issued at a single-digit interest rate, making it one of the most affordable government-backed loans available to Nigerian farmers.

Government’s Push for Agriculture Loans in Nigeria

Speaking during the 6th PFSCU Steering Committee meeting at the Presidential Villa, Abuja, Shettima stressed that the loan disbursement must not be delayed. He emphasized the need for a clear roadmap to ensure that the Federal Government loan for farmers directly benefits genuine smallholder farmers, boosting productivity and food security.

“We must work with all stakeholders to guarantee that this ₦250 billion credit support reaches real farmers and translates into measurable gains in agricultural output,” the Vice President said.

Tinubu’s Support for Food Security Funding

Shettima praised President Bola Ahmed Tinubu for granting the PFSCU political backing to act boldly in reforming the agricultural sector. He cited initiatives such as fertilizer liberalization and the Presidential Seed Fund as reforms that have already strengthened Nigeria’s food security.

“Our appreciation goes to Mr. President for his clear directives, which have empowered us to accelerate delivery in ways that support farmers and the entire food system,” he noted.

Collaboration With States and Stakeholders

The Vice President urged closer collaboration between federal ministries, state governments, the private sector, and development partners to ensure the success of the agriculture credit facility.

• Ekiti State Governor, Biodun Oyebanji: Stressed the need to build structures that guarantee farmers’ access to the ₦250 billion Bank of Agriculture loan. He pledged his state’s financial support for PFSCU operations.
• Jigawa State Governor, Umar Namadi: Commended the initiative but called for subsidies to support Nigerian farmers.
• Cross River State Governor, Bassey Otu: Agreed on credit issuance but recommended additional incentives to encourage smallholder farmers to apply for loans.

Progress Report on Agricultural Reforms

PFSCU Coordinator, Ms. Marion Moon, noted that while reforms are ongoing, about 30.8 million Nigerians remain food insecure. She highlighted the urgency of sustaining progress in food security funding.

Key achievements since April include:

• Enrolling 250,000 farmers under the National Agribusiness Policy Mechanism (NAPM).
• Launching the Harvesting Hope Caravan across eight states.
• Securing ₦50 billion for the Presidential Seed Fund.
• Advancing the $500 million World Bank–supported AGROW programme.

These efforts reflect the government’s commitment to expanding agriculture loans in Nigeria and empowering farmers through structured credit facilities.

Why This Matters

The ₦250 billion Federal Government loan for farmers represents a major step toward agricultural transformation. By providing single-digit loans for smallholder farmers, the initiative reduces financial pressure on the backbone of Nigeria’s food system and supports the expansion of food production across the country.

Meeting Attendance

The steering committee meeting was attended by the Deputy Governors of Niger and Ebonyi States, the Ministers of Finance and Agriculture, Ministers of State for Finance and Agriculture, the ALGON President, as well as representatives of the private sector and international development partners.