New Financing Scheme Targets 25 Million Tonnes of Grain
The Bank of Agriculture (BOA) and the Federal Government have unveiled a new financing scheme designed to increase Nigeria's grain output to 25 million tonnes annually. The initiative, announced on July 18, 2026, aims to boost local production of key grains such as maize, rice, and sorghum, reducing the country's reliance on imports and enhancing food security.
Details of the Scheme
According to a statement from the BOA, the scheme will provide low-interest loans to smallholder farmers and agricultural cooperatives. The loans, with a single-digit interest rate, are intended to cover inputs like seeds, fertilizers, and irrigation equipment. The BOA will also offer technical assistance to ensure best practices in grain production.
The Federal Government has allocated an initial fund of N50 billion to the scheme, with plans to scale up based on demand. The program is expected to run for three years, targeting an additional 10 million tonnes of grain production beyond current levels.
Impact on Food Security
The initiative is part of the government's broader Agricultural Transformation Agenda, which seeks to make Nigeria self-sufficient in grain production by 2030. Currently, Nigeria produces about 15 million tonnes of grain annually, leaving a deficit of 10 million tonnes that is met through imports. The new scheme aims to close this gap entirely.
"This is a game-changer for Nigerian agriculture," said Dr. Akinwumi Adesina, the BOA Managing Director. "By providing affordable financing and technical support, we can unlock the potential of our farmers and ensure that Nigeria feeds itself."
Challenges and Expectations
While the scheme has been widely welcomed, experts caution that success will depend on effective implementation. Issues such as land tenure, post-harvest losses, and access to markets remain significant hurdles. The government has pledged to address these through complementary policies, including improved storage facilities and market linkages.
Farmers have expressed optimism. "This is the kind of support we have been waiting for," said Alhaji Sani Abdullahi, a maize farmer from Kaduna State. "With access to credit and better seeds, we can double our yields."
Conclusion
The BOA-FG financing scheme represents a major step towards agricultural self-sufficiency in Nigeria. If successful, it could transform the grain sector, reduce import bills, and improve the livelihoods of millions of farmers. The government and BOA will monitor progress closely, with periodic reviews to adjust the scheme as needed.
