FG to Roll Out ₦250 Billion Bank of Agriculture Loans, Secure 250,000 Farmers with Insurance

The Federal Government has unveiled plans to disburse ₦250 billion in Bank of Agriculture (BOA) loans while providing agricultural insurance coverage for 250,000 farmers across Nigeria. The initiative aims to boost food production, support smallholder farmers, and strengthen Nigeria’s agricultural value chain.

Vice President Kashim Shettima announced the development during the 152nd meeting of the National Economic Council (NEC) held at the Presidential Villa in Abuja. According to him, the program is a major step in President Bola Tinubu’s Renewed Hope Agenda to enhance food security and stimulate economic growth.

Shettima highlighted that the ₦250 billion facility will target smallholder farmers, giving them access to affordable credit for expanding production, purchasing equipment, and improving yield. He also confirmed that 250,000 farmers have already been insured across eight states, reducing the financial risks associated with crop failure, pests, and extreme weather conditions.

Value Addition and Global Partnerships

The Vice President further revealed progress on the 30 Percent Value Addition Bill, which is designed to encourage local processing of agricultural produce before export. This move is expected to increase revenue, create jobs, and reduce Nigeria’s dependence on raw commodity exports.

Other agricultural programs are also in motion. The Green Imperative Project, a partnership with Brazil, is being repositioned for financing to modernize mechanized farming, while the World Bank-backed AGROW programme is mapping priority value chains for nationwide roll-out.

Economic Insights and Growth Opportunities

At the meeting, Tayo Aduloju, CEO of the Nigeria Economic Summit Group (NESG), stressed the importance of structural reforms to improve Nigeria’s investment climate. He identified key challenges such as energy and transport bottlenecks, foreign exchange shortages, and over-reliance on oil revenues, which continue to drive production costs and limit fiscal sustainability.

Aduloju also pointed to global pressures—rising inflation, climate change, and geopolitical risks—that threaten agricultural productivity and investment flows. He urged state governments to embrace industrialization and improve the ease of doing business to attract both local and foreign investors.

NESG Summit to Drive Industrialization

The upcoming Nigeria Economic Summit (NESG) in Abuja will focus on building infrastructure for competitiveness, unlocking investment, and strengthening subnational economies. Stakeholders are expected to discuss policies that can attract capital inflows, boost food security, and create sustainable jobs in the agricultural sector.

Why This Matters for Farmers and Investors

The ₦250 billion Bank of Agriculture loan scheme and the nationwide insurance coverage are expected to unlock billions in agribusiness opportunities. With government-backed financing, smallholder farmers can now access low-interest loans for equipment, irrigation, and technology-driven farming. Investors in agriculture, fintech, and agritech sectors also stand to benefit from new funding channels, value-added exports, and emerging commodity markets.

This initiative signals Nigeria’s determination to position agriculture as a profitable investment frontier, capable of driving food sufficiency and reducing dependence on oil revenue.