In a major move to transform Nigerian agriculture, the Bank of Agriculture (BOA) has launched a Federal Government-backed ₦250 billion intervention fund paired with sweeping operational reforms. The initiative marks a fundamental shift for the institution as it modernises into a technology-driven development finance entity aimed at boosting national food security and supporting millions of smallholder farmers and agribusinesses across the country.
Speaking at an interactive session with the Agricultural Correspondents Association of Nigeria (ACAN) in Abuja, BOA Managing Director and Chief Executive Officer Ayo Sotinrin revealed a fundamental shift in how the bank delivers credit. Instead of dispensing loans directly to individual farmers, a model long plagued by high default rates, the bank is moving toward an aggregator-based system. Under this strategic pivot, capital will now flow through accredited farmer aggregation companies, ensuring greater accountability while seamlessly integrating smallholders into structured commercial value chains.
The transformation is already underway, with roughly 20 aggregation companies selected from a pool of over 1,200 applicants to spearhead the program's initial pilot phase before a planned nationwide rollout. Beyond capital, this collaborative structure delivers an end-to-end support system for farmers. By partnering with approved aggregators, smallholders gain streamlined access to high-yield seeds, fertilizers, modern equipment, and expert extension services, alongside guaranteed off-take markets for their produce.
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Ultimately, the bank's renewed strategy aims to bridge Nigeria's agricultural financing gap by combining digital technology and mechanisation with robust value-chain backing. By equipping farmers with the tools, market access, and financial resources required to scale operations, the BOA is laying the groundwork for a more resilient, self-sufficient, and prosperous agricultural sector.
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