The Bank of Agriculture (BOA) has partnered with the All-Farmers Association of Nigeria (AFAN) to provide financing to farmers for the 2026 dry season farming cycle. This initiative aims to drive year-round food production and stabilise domestic supply chains. The partnership will provide critical financing to farmers, enabling them to scale operations during the off-rainy season. This move is essential to curbing seasonal supply shortages and output volatility in Nigeria's food market.
The initiative is implemented under BOA's Renewed Hope Smallholder Support and Value Chain Fund (RH-SSVCF). The fund aims to build a verifiable pipeline of active farmers seeking capital to scale operations during the off-rainy season. BOA's Managing Director, Ayo Sotinrin, emphasised the importance of capital intervention during non-rainy months to protect farmer livelihoods and bolster market supply. He highlighted that dry season farming allows production to continue beyond the main farming season.
Sotinrin noted that collaborating with AFAN provides the institutional reach required to deploy capital safely at scale. The partnership will enable farmers to access financing, inputs, and irrigation equipment. Unlike conventional agricultural lending schemes, the fund extends credit for irrigation toolkits and associated equipment. This focus on capital expenditure aims to address key structural bottlenecks in Nigerian agricultural productivity.
The FAO has identified limited irrigation infrastructure and inadequate access to credit as major drags on Nigerian agricultural productivity. To address this, AFAN will leverage its national network to identify eligible farmers and compile data on farm locations, commodities, acreage, and proposed dry season targets. The association will also vet Farmer Aggregation Companies (FACs) capable of acting as off-takers and operational coordinators.
Under the agreed framework, approved credit lines will be funnelled through selected FACs, which will serve as obligors responsible for distributing inputs and managing field-level operations. BOA noted that all submissions will undergo rigorous credit assessments and due diligence prior to disbursement. This ensures that only eligible farmers receive financing and that the funds are utilised effectively.
The partnership between BOA and AFAN is a significant step towards addressing Nigeria's food security challenges. By providing financing for dry season farming, the initiative aims to increase food production and stabilise domestic supply chains. This move is expected to have a positive impact on the country's agricultural sector and the economy as a whole.
The initiative is expected to benefit farmers across Nigeria, enabling them to increase their productivity and contribute to the country's food security. With the support of BOA and AFAN, farmers will be able to access the financing and resources they need to succeed in the dry season farming cycle.
Key points
- The partnership aims to provide critical financing to farmers for the 2026 dry season farming cycle.
- The initiative is implemented under BOA's Renewed Hope Smallholder Support and Value Chain Fund (RH-SSVCF).
- The partnership will enable farmers to access financing, inputs, and irrigation equipment.
