Tinubu Approves N30 Billion Payout to Agro-Dealers to Boost Nigeria’s Food Supply

President Bola Tinubu has ordered the immediate release of ₦30 billion to settle outstanding payments owed to agro-dealers and input suppliers under the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP) program. The funds, provided by the African Development Bank (AfDB), are intended to strengthen Nigeria’s food production chain and support farmers ahead of the next planting cycle.

Bank of Agriculture to Oversee Fund Disbursement

The Bank of Agriculture (BOA) has been appointed as the custodian of all agricultural financing program funds. According to BOA’s external media relations lead, Judith Ekwebelem, the bank will handle the disbursement of payments to registered agro-dealers using a robust electronic wallet system to ensure swift transactions.
The BOA has pledged to process payments to eligible beneficiaries within 24 hours of verification and will provide weekly progress updates until all arrears are cleared.

Second Tranche from AfDB Targets 2024 Program Arrears

The ₦30 billion represents the second tranche of funding released by the AfDB for the NAGS-AP scheme. The money will settle obligations from the 2024 dry and wet season farming programs, which focused on improving crop yields and providing subsidized inputs to farmers.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, directed that the payment process be treated with the highest priority to stabilize food prices and enhance supply across the country.

Streamlined Conditions for Beneficiaries

BOA Managing Director and Chief Executive, Ayo Sotinrin, confirmed that the disbursement process officially began on September 18, 2025, after the handover of beneficiary data from the NAGS-AP Secretariat.
He described the initiative as a “defining moment for Nigeria’s agricultural sector,” adding that it represents a strong commitment to achieving national food security and promoting agribusiness growth.

To qualify for payment, beneficiaries must:

• Maintain a BOA account, which is required for claim processing. Account registration is free and can be completed online.
• Be pre-qualified under the NAGS-AP scheme before 2025, as no new applications are currently being accepted.
• Have received at least one previous payment under the program.
• Complete account activation to enable rapid processing. Verified claims will be settled within one business day.

Sotinrin urged all eligible agro-dealers and suppliers to comply with these requirements without delay to avoid processing setbacks.

Boosting Food Security and Agribusiness

The payment directive is expected to inject fresh capital into Nigeria’s agricultural value chain, enabling farmers to purchase essential inputs such as fertilizers, seeds, and chemicals ahead of the upcoming planting season.
Analysts say the move could help stabilize food prices, reduce inflationary pressures, and encourage private sector participation in agriculture—factors that are attractive to investors and agro-business operators.