In a groundbreaking move to transform Nigeria’s agricultural landscape, President Bola Ahmed Tinubu has approved a massive ₦1.5 trillion ($1 billion) recapitalisation package for the Bank of Agriculture (BOA). The announcement marks a bold step towards reshaping the nation’s food systems, strengthening agribusiness financing, and accelerating the economic inclusion of youth and women in agriculture.
According to an official statement from the Federal Ministry of Agriculture and Food Security, the recapitalisation plan is aimed at repositioning the Bank of Agriculture as a viable and dynamic development finance institution.
“President Bola Tinubu has approved the recapitalisation of the Bank of Agriculture with ₦1.5 trillion, marking the most significant boost to agricultural finance in Nigeria’s history,” the statement read.
Minister of Agriculture and Food Security, Abubakar Kyari, explained that this strategic intervention aligns with the Tinubu administration’s Renewed Hope Agenda, with a strong focus on food security, economic diversification, and job creation.
He noted that the revitalised Bank of Agriculture will directly target youth and women-led agribusinesses, providing accessible credit, training, and support systems to nurture agricultural entrepreneurs and smallholder farmers.
“We must ensure this recapitalisation delivers at scale — by financing not just collateral, but productivity. It means giving entrepreneurs the tools, not just the funds, to succeed,” Kyari emphasized.
The minister also highlighted the National Agricultural Technology and Innovation Policy (NATIP) as the strategic framework driving agricultural transformation.
“NATIP is our policy backbone for transforming agriculture into a tech-enabled, youth-driven sector. It promotes mechanisation, digital agriculture, and strong research-to-commercialisation linkages,” Kyari said.
Under NATIP, the government aims to make agriculture more attractive, competitive, and financially rewarding — especially for the next generation of Nigerian farmers.
To ensure the recapitalisation effort has lasting impact, the federal government is implementing the National Agribusiness Policy Mechanism, coordinated by the Presidential Food Systems Coordination Unit. This mechanism sets clear lending targets, particularly for women and youth, while promoting climate-smart agriculture and building efficient food supply chains.
Kyari said:
“We are seeing early momentum across states, reaching over 250,000 farmers so far. This is evidence of what’s possible when bold policy meets political will and institutional alignment.”
The initiative is expected to support strategic investments in rural logistics, aggregation centres, storage hubs, and post-harvest infrastructure to reduce food loss and boost profitability across value chains.
The recapitalisation forms a core part of Tinubu’s broader agenda to reclaim Nigeria’s food systems and reduce dependence on food imports, which currently cost the nation billions in foreign exchange annually.
“Food sovereignty means reclaiming control over what we grow, process, and consume. It is about investing in Nigerian farmers, processors, and agribusinesses as the pillars of national resilience,” Kyari stated.
The minister emphasized that the twin goals of food security and job creation must not be treated as isolated targets but as interconnected levers for inclusive growth and national sovereignty.
Agricultural stakeholders and experts have welcomed the initiative as long overdue.
Dr. Sola Akintunde, an agribusiness development consultant, hailed the funding as a “critical enabler” that could drive inclusive economic development if executed with transparency and efficiency.
“What we need now is a framework that ensures funds actually reach smallholder farmers and agribusiness startups. Monitoring and impact assessment will be crucial,” he noted.
The recapitalisation of the BOA is also expected to trigger reforms within the banking sector, encouraging commercial banks to lower interest rates on agricultural loans and increase participation in rural lending.
While the funding approval signals strong political commitment, experts caution that execution will determine success. Calls are growing for the establishment of a transparent disbursement mechanism, digital tracking tools, and private sector partnerships to ensure delivery of tangible results.
If implemented effectively, the initiative could help reduce Nigeria’s post-harvest losses (currently estimated at 40%), stimulate local food production, and empower millions of underserved rural entrepreneurs.
As Nigeria grapples with inflation, food insecurity, and youth unemployment, the ₦1.5 trillion recapitalisation of the Bank of Agriculture stands as a transformative policy pivot. With coordinated implementation, this move has the potential to unlock a new era of agribusiness-led prosperity — one where Nigerian farmers lead the way toward food sufficiency, economic inclusion, and sustainable development.