The FGN Launches ₦250B Financing Window for Smallholder Farmers
In a move to revamp the agricultural sector, the Federal Government of Nigeria has unveiled a ₦250 billion financing window to support smallholder farmers across the country. The facility, to be channeled through the Bank of Agriculture and coordinated by the Presidential Food Systems Coordinating Unit, is intended to unlock working capital for production, inputs, mechanization, and post-harvest activities at single-digit interest rates, speed up production cycles, and fortify food security.
The ₦250 billion window is part of the push by the Tinubu administration to stabilize food supplies and ramp up production by de-risking financing for smallholder farmers. The government further said the fund would facilitate farmers’ access to inputs (seed, fertiliser), equipment and working capital, while supporting value-chain interventions (storage, processing and marketing) that reduce waste and enhance incomes. Vice-President Kashim Shettima has tasked the PFSCU with fast-tracking the implementation roadmap so the funds get to their intended beneficiaries in good time.
Who will be prioritized / eligible
Although the PFSCU and BOA will publish the definitive eligibility rules and application process, reported and customary priorities for similar FG/BOA schemes include:
Smallholder farmers who are actively farming, including women and youth farmers.
Farmer cooperatives and producer groups allow scaling and aggregation.
Agribusinesses / aggregators / service providers that work directly with smallholders, such as input distributors, off-takers, mechanisation service providers.
Selection will be based on applicants who can show a clear production plan, demonstrated demand-off-takers or offtake agreements-and the ability to meet simple loan conditions-a bank account, BVN, basic collateral/guarantors as required.
Important:
The Vice-President’s instruction was for a roadmap to ensure the funds “reach the intended farmers,” which implies a focus on last-mile delivery and likely State/Zone allocations or partner channels, through BOA branches and PFSCU structures. Quotas or prioritization for women, youth, and specific value chains are also likely in the final operational rules. This isn’t just another fund – it’s a lifebelt for the backbone of our agriculture: small farmers who produce in excess of 90 percent of the food in Nigeria but struggle to have access to reasonably priced credit. Announced alongside initiatives such as the Nigeria Postharvest Systems Transformation Programme, NiPHaST, aimed at reducing $10 billion annual post-harvest losses, this new financing drive is needed to modernize farming and stabilize prices so that more food is put on our tables.
