The African Export and Import Bank (Afreximbank) and the Bank of Agriculture (BOA) have sealed a $1 billion facility deal on behalf of Nigerian smallholder farmers.  
 
The agreement, which was formally concluded yesterday at the fourth Intra-African Trade Fair (IATF) taking place in Algiers, Algeria, represents a major strategic intervention aimed at bridging the persistent financial divide that has long hindered the productivity and growth of small-scale farmers across the federation.
 
Signing on behalf of their respective institutions were the Chief Executive Officer of BOA, Ayo Sotinrin and Executive Vice President for Intra-African Trade and Export Development at Afreximbank, Mrs. Kanayo Awani.
 
The facility would address the systemic financing constraints that affect nearly 95 per cent of players within Nigeria’s agricultural value chain, most of whom are smallholder farmers.     
 
For decades, this segment of the population has carried the weight of national food production, but has remained underserved by formal financial institutions. 
 
With this facility, Afreximbank and BOA are working to dismantle the barriers by providing farmers with easier access to capital and development-focused financial solutions tailored to their realities.
 
Through the $1 billion facility, smallholder farmers will now be better positioned to secure affordable credit for a broad range of critical agricultural needs.
 
These include the purchase of essential inputs such as seeds, fertilisers, and agrochemicals; access to mechanised farming services that can enhance yield and reduce labour inefficiencies, and investment in aggregation and storage infrastructure to minimise post-harvest losses.
 
The funding will also enable farmers to engage in value addition through processing, making their produce more competitive in both local and international markets.
 
In addition, the facility will support the establishment of structured market linkages, thereby allowing farmers to connect directly with buyers, processors, and exporters through more organised and profitable value chains.