The Federal Government of Nigeria has approved ₦550 billion for the Bank of Agriculture (BoA) to support smallholder farmers and implement a Guaranteed Minimum Price (GMP) Programme aimed at stabilising food prices across the country.
The Managing Director of the Bank of Agriculture, Ayotunde Sotinrin disclosed this in a statement.
He said ₦250 billion of the amount will be used to finance smallholder farmers through technology-driven agricultural financing systems.
The Managing Director added that ₦300 billion will be used to support the Guaranteed Minimum Price Programme.
He said the amount will enable the Bank of Agriculture to purchase farm produce during harvest and release it when necessary to help stabilise market prices and reduce food inflation.
Sotinrin added that the bank will channel financing through aggregation companies such as AFEX, ThriveAgric, and Arziki Noma, rather than lending directly to individual farmers.
“This approach is intended to improve efficiency, strengthen value chains, and reduce the risk of loan defaults,” he said.
This is a significant development for Nigeria’s agricultural sector and could create more opportunities for smallholder farmers, cooperatives, and agribusinesses.
Farmers and agribusiness operators should continue monitoring official announcements from the Bank of Agriculture (BoA) and participating aggregation companies for information on eligibility requirements and access to financing opportunities.
(vitalnewsngr.com)
