FG, BOA Unveil Financing Scheme to Raise Grain Output to 25m Tonnes

FG, BOA Unveil Financing Scheme to Raise Grain Output to 25m Tonnes John Shiklam in Kaduna The Bank of Agriculture (BOA), in partnership with the federal government, has launched the Renewed Hope Smallholder Agricultural Financing Programme aimed at more than doubling Nigeria’s annual grain production from about 11 million tonnes to 25 million tonnes, as part of efforts to strengthen food security, tame rising food prices and boost rural incomes. The initiative, unveiled on Friday in Zaria, Kaduna State, according to Nairametrics, is expected to provide affordable financing, improved farm inputs and extension support to millions of smallholder farmers, while promoting sustainable agricultural production through a revolving credit model. Speaking at the launch of the Renewed Hope Smallholder Support and Value Chain Fund, the Managing Director of BOA, Mr. Ayodeji Oludare-Sotinrin, said the programme would provide subsidised fertilisers, certified hybrid seeds and other critical agricultural inputs through a single-digit-interest financing facility. Unlike previous intervention programmes that relied largely on grants, he explained that the inputs would be financed under the bank’s nine per cent lending scheme, making them affordable for farmers while ensuring the long-term sustainability of the programme. According to him, the initiative is designed to raise farm productivity and sustainably strengthen national food security. Oludare-Sotinrin disclosed that BOA selected 20 farm aggregators from over 1,240 applicants after assessing their technical competence and operational capacity to support participating farmers during the pilot phase. He said the first phase of the programme would reach about 500,000 farmers in the current farming season, adding that the bank plans to expand coverage to two million farmers next year before scaling up to five million Nationwide. He projected that if five million farmers each cultivate one hectare and achieve an average yield of at least five tonnes per hectare, Nigeria could produce about 25 million tonnes of grain annually, enough to meet domestic demand and create export opportunities. According to him, the expected increase in production would reduce the country’s dependence on food imports, stabilise domestic food prices, improve food security, create jobs in rural communities and support broader economic growth. Oludare-Sotinrin also disclosed that BOA was developing irrigation financing and irrigation-as-a-service initiatives to support year-round farming, improve productivity, increase farmers’ incomes and reduce reliance on rain-fed agriculture. He urged beneficiaries to utilise the inputs strictly for agricultural purposes, refrain from diverting or reselling them, comply with extension service guidelines and ensure prompt repayment of the loans to sustain the revolving financing scheme. Earlier, the Minister of Agriculture and Food Security, Senator Abubakar Kyari, reaffirmed the federal government’s commitment to addressing food inflation by increasing domestic agricultural production rather than imports. Kyari said food affordability remained largely a function of supply and demand, stressing that expanding agricultural output through timely access to quality inputs was central to the Tinubu administration’s food security agenda. He disclosed that about two million farmers would benefit from the programme through registered farm aggregators, who would provide quality farm inputs, extension services and a Guaranteed Minimum Price mechanism, designed to shield farmers from exploitative market practices after harvest.