The Bank of Agriculture (BOA) has entered into a landmark $1 billion financing partnership with the African Export-Import Bank (Afreximbank) to expand credit access and modernise the country’s agricultural sector, particularly for smallholder farmers.
The agreement was formalised during the recently concluded Intra-African Trade Fair (IATF) 2025 in Algiers, Algeria, and is designed to strengthen Nigeria’s agricultural value chain from production to processing and export.
Unlocking Capital for Smallholder Farmers
The initiative aims to provide direct financial support and equipment financing for smallholder farmers who currently contribute more than 90% of Nigeria’s agricultural output but face persistent challenges, including limited access to capital, outdated technology, and poor market integration.
“This is more than just a fund; it is a bold commitment to ensuring our nation’s food security,” said Ayo Sotinrin, the newly appointed Managing Director and Chief Executive Officer of BOA. “By joining forces with Afreximbank, we are unlocking opportunities for smallholder farmers to move beyond subsistence farming into sustainable and profitable agribusiness.”
Reducing Credit Risk Through Guarantees
Under the agreement, Afreximbank will provide loan guarantees for credit disbursed by BOA, reducing risk exposure and expanding financing to previously underserved farmers. The partnership also introduces a currency swap arrangement, converting Afreximbank’s dollar-denominated funds into local currency for lending — helping shield farmers from exchange rate volatility.
Both institutions said the framework will improve access to international capital markets while ensuring that financing remains stable and affordable for rural producers.
Supporting National Food Security Goals
The $1 billion programme aligns closely with President Bola Tinubu’s administration’s National Smallholder Farmers Fund, a new initiative that establishes a revolving food security fund in collaboration with state governments. The fund seeks to close Nigeria’s agricultural financing gap by offering affordable loans for inputs, mechanisation, and market development.
Transforming the Bank of Agriculture
The BOA, jointly owned by the Federal Ministry of Finance Incorporated and the Central Bank of Nigeria, is Nigeria’s primary development finance institution for agriculture and rural development. Established in 1972, the bank has a mandate to promote agricultural productivity, rural job creation, and financial inclusion.
The recent leadership change — with Sotinrin’s appointment by President Tinubu — is part of broader efforts to reposition BOA as a modern, technology-driven, and commercially viable agricultural finance institution capable of delivering large-scale impact.
Afreximbank’s Expanding Regional Role
Afreximbank, which co-organised the IATF alongside the African Union Commission and the African Continental Free Trade Area (AfCFTA) Secretariat, described the 2025 trade fair as its most successful to date. The event attracted over 112,000 participants both online and on-site and facilitated more than $48 billion in trade and investment deals across Africa.
According to Afreximbank, partnerships like the BOA agreement exemplify the kind of cross-border collaboration needed to realise the continent’s agricultural and trade potential.
A Step Toward Sustainable Agribusiness
For Nigeria, the deal signals renewed momentum in transforming agriculture into a commercially sustainable, technology-driven sector. With fresh leadership, international backing, and alignment with national policy goals, the Bank of Agriculture appears set to play a central role in financing the country’s next agricultural revolution.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
