The Federal Government (FG) has granted a ₦250 billion credit facility to the Bank of Agriculture (BOA) to support smallholder farmers across Nigeria and improve access to affordable agricultural financing. This initiative complements other empowerment programmes such as the Petty Traders Grants 2026, which provide financial support to small business owners and market traders.
The new intervention will allow farmers to access loans at single-digit interest rates, helping them purchase fertilizers, improved seedlings, irrigation tools, and mechanized farming equipment needed to boost food production.
The announcement was made by the Minister of Agriculture and Food Security, Senator Abubakar Kyari, during the Quarterly Citizens and Stakeholders Engagement Session held in Abuja.
According to the minister, the FG grants initiative is designed to strengthen agricultural productivity, improve food security, and create better livelihood opportunities for millions of farmers across the country.
Why FG Grants N250bn to Farmers
The government explained that the decision to grant ₦250 billion to the Bank of Agriculture is part of broader reforms aimed at strengthening agricultural financing institutions in Nigeria.
The program will leverage key agricultural agencies, including:
- WASSMAS Agriculture
- Nigerian Agricultural Insurance Corporation (NAIC)
- National Agricultural Quarantine Service (NAQS)
- Bank of Agriculture (BOA)
Through these institutions, the FG grants facility will make it easier for smallholder farmers to obtain affordable loans and insurance support for their agricultural activities.
The government believes expanding access to credit will help farmers invest in modern farming techniques and increase overall agricultural productivity.
Agricultural Insurance Expands to Protect Farmers
The government also highlighted progress in agricultural risk protection programs.
According to the minister, the Nigerian Agricultural Insurance Corporation (NAIC) has supported over 199,000 farmers in the past two years, providing insurance coverage worth approximately ₦700 billion.
Agricultural insurance helps farmers recover from unexpected losses caused by flooding, drought, pests, and crop diseases.
With the new FG grants agricultural financing initiative, farmers will now have better access to both credit and insurance protection.
Government Distributes Fertilizers to Boost Productivity
The Ministry of Agriculture also revealed that the government has distributed more than 1.9 million bags of fertilizer to nearly one million farmers across Nigeria.
The fertilizer support program forms part of the broader strategy behind the FG grants agricultural support programs, which aim to reduce food shortages and increase crop yields nationwide.
The government has also strengthened regulations to ensure transparency in fertilizer distribution and prevent the circulation of adulterated agricultural inputs.
Previous Agricultural Funding Initiatives
The newly announced ₦250 billion facility under the FG grants initiative builds on several previous agricultural financing programs like the WASMASS, NALDA, etc.
In September 2025, the Bank of Agriculture secured a $1 billion intervention fund in partnership with the African Export-Import Bank (Afreximbank) to strengthen Nigeria’s agricultural value chain.
This fund focuses on helping farmers overcome financial barriers that prevent them from accessing modern equipment, farm inputs, and market opportunities.
The government also approved the National Smallholder Farmers Fund, designed to support farmers who produce over 90% of Nigeria’s total agricultural output.
Cocoa Industry Revitalization Efforts
The government is also investing in agricultural research to improve long-term crop productivity.
The Agricultural Research Council of Nigeria (ARCN) recently distributed 40 million cocoa seedlings to support the revitalization of Nigeria’s cocoa industry.
Officials say this initiative will help expand cocoa plantations and increase Nigeria’s export earnings from agricultural commodities.
Support for Vulnerable Groups
In addition to the new FG grants agricultural facility, the Bank of Agriculture has also partnered with international organizations to support vulnerable populations.
In October 2025, the bank secured a $200 million Livelihood Support Fund in collaboration with the International Organization for Migration (IOM).
The program aims to provide economic opportunities for displaced persons and migrants, helping them start farming activities or small businesses.
What the FG Grants Program Means for Farmers
Experts say the N250 billion FG grants facility could significantly improve Nigeria’s agricultural sector by expanding farmers’ access to affordable financing.
With easier access to credit, farmers will be able to:
- Buy modern farming equipment
- Expand their farm operations
- Increase crop yields
- Improve food production
- Strengthen rural livelihoods
The FG grants agricultural financing program is expected to play a major role in improving food security while supporting economic growth in Nigeria’s rural communities.
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