Business Direct / 10 Sept 2025

BOA, Afreximbank seal $1bn deal to boost food security

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BOA, Afreximbank seal $1bn deal to boost food security

The Bank of Agriculture (BOA) has entered into a $1 billion financing agreement with the African Export-Import Bank (Afreximbank) to strengthen Nigeria’s food security and support smallholder farmers.

The deal was formalised during the Intra-African Trade Fair (IATF) 2025 in Algiers, Algeria, with BOA Managing Director, Ayo Sotinrin, and Afreximbank’s Executive Vice President, Kanayo Awani, signing on behalf of their respective institutions.

A statement by BOA’s Senior Manager and Head of Corporate Communication, Maikenti Akila, confirmed that the arrangement was concluded under the leadership of Afreximbank President, Professor Benedict Oramah, who has been instrumental in mobilising resources to expand Africa’s agricultural value chains and boost intra-African trade.

The financing package will establish a National Smallholder Farmers’ Fund to address critical funding gaps affecting small-scale farmers, who make up nearly 95 per cent of participants in Nigeria’s agricultural sector.

Through the scheme, BOA and Afreximbank will deploy blended finance solutions designed to make credit more affordable. The loans will cover essential inputs such as seeds, fertilisers, and agrochemicals, as well as mechanised services aimed at improving productivity and yields.

Beyond primary production, the fund will channel investment into storage facilities, aggregation centres, and logistics infrastructure to reduce post-harvest losses. It will also create structured market linkages, connecting farmers more directly with buyers, processors, and exporters.

“This deal represents a bold step toward building a sustainable future. It provides smallholder farmers with the resources they need to thrive, contributing significantly to national food security and economic growth,” Sotinrin said at the signing ceremony.

The partnership also aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which places food security and farmer empowerment at the heart of Nigeria’s economic development strategy.