The Bank of Agriculture (BOA), in collaboration with Dalahill Law Practice, has initiated the development of a climate financing framework designed to accelerate clean energy solutions throughout Nigeria's agricultural value chains. This was disclosed during a Clean Energy Financing Capacity Building Workshop held in Abuja on Wednesday.
BOA operationalises Clean Energy Development Unit
Mr. Tosin Salami, BOA's Executive Director of Operations, stated that the bank is operationalising its Clean Energy Development and Innovation Unit (CEDIU) to expand climate-smart energy solutions for farmers and minimise post-harvest losses. He emphasised that the initiative would concentrate on creating bankable project concepts capable of attracting financing from multilateral institutions and private climate funds, addressing energy poverty and key challenges in the agricultural sector.
According to Salami, the funds will support infrastructure such as cold chain facilities, irrigation systems, mechanisation equipment, and electric bikes for transporting harvests from farms to markets.
Project funded by Africa Climate Foundation grant
Dr. Adnan Aminu, Head of BOA's Clean Energy Delivery and Innovation Unit and Project Lead for the Clean Energy Implementation Programme, explained that the unit is being funded through a grant from the Africa Climate Foundation (ACF) to Dalahill LP, which is implementing the project within the bank. He noted that the programme, now in its fifth month, aims to strengthen BOA's capacity to finance clean energy projects and improve farmers' access to electricity and climate-smart technologies.
Aminu disclosed that the project will produce a Clean Energy Accessibility Framework to guide BOA's financing priorities, risk assessment toolkits for evaluating clean energy investments, and lending models that encourage financing for farmer clusters and cooperatives. The risk assessment tools will help the bank evaluate projects such as solar-powered irrigation systems and cold storage facilities to ensure investments align with agricultural needs.
Addressing post-harvest losses and climate finance gap
Aminu noted that Nigeria's climate finance requirement exceeds $2 trillion, although specific estimates for clean energy financing in agriculture are still being compiled. He identified post-harvest losses as a major challenge, particularly in the tomato and onion value chains, where more than half of production is lost due to inadequate storage facilities. Large-scale cold rooms located in farming communities could significantly reduce losses and boost farmers' incomes.
Aminu also cited a recent Sustainable Energy for All study, which found that electrification could increase agricultural profitability by more than 123 per cent. The ACF-funded project is expected to conclude in July, after which BOA will begin implementing the framework and related financing programmes nationwide.
