The Bank of Agriculture (BOA) has launched new initiatives aimed at addressing Nigeria's volatile agricultural market and protecting smallholder farmers from persistent price instability. The Managing Director, Ayo Sotinrin, described these reforms as part of President Bola Ahmed Tinubu's agricultural agenda being implemented through the bank. He stated that the interventions will improve farmer income, expand financial inclusion, and boost food security.
Guaranteed Minimum Price Mechanism
Speaking during an interview on MoneylinewithNancy on AIT, Sotinrin emphasized that the initiatives reflect the Federal Government's commitment to supporting farmers. A key pillar of the plan is the introduction of a Guaranteed Minimum Price (GMP) mechanism to address the gap between production costs and farm-gate prices. Under this arrangement, the government will set a price floor for staple crops such as maize, rice, soybeans, and cassava. The bank will purchase excess produce directly from farmers to prevent post-harvest losses and store the commodities in the nation's 33 silos for future price stabilization.
Digital Transformation and Mechanisation
The BOA boss also announced a shift from direct microcredit to a digital ecosystem driven by farmer aggregation companies. The bank now leverages digital platforms and identity verification tools, including BVN and NIN, to open bank accounts for farmers within minutes, ensuring financial support reaches genuine producers rather than middlemen. Sotinrin noted that mechanisation remains a major focus, citing Nigeria's low tractor density of 0.27 per 100 square kilometers. The bank has deployed 2,000 high-durability tractors sourced from Belarus to service providers who must demonstrate the capacity to mechanise at least 600 hectares each.
Ginger Export Target
The initiative is expected to support more than 1.2 million farmers during the current wet season. The programme will replace traditional replanting methods with tissue culture technology, with the goal of expanding the ginger industry from a $300 million sector to a $3 billion export powerhouse by 2028. Sotinrin added that the food stabilisation programme would be driven as a massive national campaign, with the country sensitised through all media platforms.
These reforms align with President Tinubu's drive to strengthen food systems, scale production, and ensure farmers enjoy the rewards of their efforts, ultimately improving food security and economic stability in Nigeria.
