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In a major stride toward agricultural transformation, the Bank of Agriculture (BOA) and the African Export-Import Bank (Afreximbank) have signed a landmark agreement to mobilize up to $1 billion for Nigeria’s National Smallholder Farmers Fund. The deal was formalized at the 2025 Intra-African Trade Fair in Algiers, marking a pivotal moment in the country’s push for food security and agribusiness development.

The fund is designed to empower Nigeria’s smallholder farmers—who contribute over 90% of the nation’s agricultural output—by providing affordable credit for inputs, equipment, and market access. The initiative aims to strengthen the entire agricultural value chain, from production to commercialization, and transition farmers from subsistence to sustainable enterprise.

BOA Managing Director and CEO Ayo Sotinrin described the fund as “a bold commitment to ensuring our nation’s food security,” emphasizing the transformative potential of the partnership. “By joining forces with Afreximbank, we are unlocking opportunities for smallholder farmers to move beyond subsistence farming into sustainable and profitable agribusiness,” he said.

Afreximbank’s Executive Vice President for Intra-African Trade and Export Development, Kanayo Awani, echoed the sentiment, noting that smallholder farmers are vital contributors to the agro-industrial sector. “By partnering with BOA to support the National Smallholder Farmers Fund, Afreximbank is helping deliver greater impact in Nigeria’s quest for food security and economic development,” Awani stated.

The agreement includes innovative financial mechanisms such as loan guarantees to reduce credit risk and currency swap arrangements that convert dollar-based funding into local currency. These tools are designed to ease access to international capital while shielding farmers from exchange rate volatility.

This initiative aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda and complements broader national efforts to reform land use, empower youth and women in agriculture, and achieve food sovereignty. It also builds on the recently approved National Food Security Fund, a revolving matching fund developed in partnership with state governments.

The announcement was one of the highlights of the fourth Intra-African Trade Fair, which attracted over 112,000 participants and generated more than $48 billion in trade deals. With over 2,100 exhibitors and representation from 132 countries, the event underscored the growing momentum behind intra-African collaboration in trade, investment, and development.