FG Approves N250bn for Bank of Agriculture to Aid Farmers

The Federal Government of Nigeria has approved a N250 billion facility for the Bank of Agriculture (BOA) to support smallholder farmers across the country by providing access to credit at single-digit interest rates. This announcement was made by the Minister of Agriculture and Food Security, Sen. Abubakar Kyari, during a quarterly citizen stakeholder engagement session in Abuja.

The initiative is part of a broader government effort to strengthen agricultural financing and leverage institutions such as the Nigerian Agricultural Insurance Corporation (NAIC) and the National Agricultural Quarantine Service (NAQS). Kyari noted that NAIC has supported 199,000 farmers over the past two years, providing a total risk cover of N700 billion.

The N250 billion facility aims to boost agricultural production, enhance food security, and empower farmers with modern equipment and inputs. Additionally, the facility is designed to address financial barriers faced by smallholder farmers and improve their market access.

The initiative was approved by President Bola Tinubu and is expected to significantly contribute to Nigeria's agricultural output.