The Nigerian government has approved a historic N1.5 trillion investment in the Bank of Agriculture to boost food production. The approval, granted by President Bola Ahmed Tinubu, aims to enhance agricultural financing and strengthen food security across the country.
Minister of Agriculture and Food Security, Sen. Abubakar Kyari, made the announcement in Abuja while receiving a delegation from the European Bank for Reconstruction and Development (EBRD). He described the funding as a “game changer” and an unprecedented move in Nigeria’s agricultural history.
“I’m pleased to announce that the National Assembly has approved N1.5 trillion for the Bank of Agriculture, equivalent to about $1 billion. This marks a significant milestone in agricultural financing,” Kyari stated.
Additionally, N500 billion (approximately $300 million) has been allocated to the Bank of Industry to support agri-processing and agribusinesses. The minister emphasized the government’s commitment to prioritizing agriculture in financial sector policies.
“We aim to leverage Nigeria’s banking sector to create dedicated agri-financing facilities with first-law cover. This will encourage banks to take more risks while providing capacity building for financial institutions and sub-borrowers,” he explained.
Kyari also urged the European Bank to invest significantly in Nigeria to help tackle challenges such as postharvest losses, inadequate irrigation, and poor yields.
In response, Dr. Heike Harmgart, EBRD Managing Director for Sub-Saharan Africa, affirmed the bank’s interest in supporting Nigeria’s agricultural sector. She highlighted Nigeria’s vast economic potential and revealed plans to establish an EBRD office in Lagos.
“We are eager to invest in Nigeria’s food value chain and will propose making Nigeria a key investment destination at our annual meeting in May,” she said.
