Nigeria's National Food Security Fund has received a major boost as the Bank of Agriculture (BOA) and African Export-Import Bank (Afreximbank) signed a landmark $1 billion financing deal at the Intra-African Trade Fair 2025 in Algiers, Algeria.
The partnership is designed to provide affordable credit and financial support for smallholder farmers and players across the agricultural value chain, from production to market.
According to BOA, the fund will address the chronic financing gap faced by farmers, offering access to mechanisation, quality inputs, and structured markets that drive productivity and value addition.
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Mr. Ayo Sotinrin, CEO of BOA, described the move as a bold step to move smallholders from subsistence to sustainable agribusiness. "This is about unlocking opportunities for farmers to build profitable ventures while securing our nation's food future," he said.
Mrs. Kanayo Awani, Afreximbank's Executive Vice President, noted that smallholders are central to Africa's agro-industry. She stressed that the fund will deliver liquidity to underserved farmers, helping them scale into national and continental markets.
To ease access, a currency swap arrangement will convert Afreximbank's dollar funding into naira for BOA's onward lending, protecting farmers from exchange rate risks while opening doors to global capital markets.
