By Abbas Nazil
President Bola Tinubu has approved a landmark N1.5 trillion recapitalisation of the Bank of Agriculture (BOA), a move that marks the most significant injection of funding into Nigeria’s agricultural financing history.
The announcement was made in a statement issued by the Ministry of Agriculture and Food Security, emphasizing that this initiative is aimed at repositioning BOA as a dynamic development finance institution.
The recapitalisation will focus on deliberately supporting youth and women-led agribusinesses by providing accessible credit and capacity-building opportunities.
Minister of Agriculture and Food Security, Abubakar Kyari, explained that this effort aligns with the implementation of the National Agricultural Technology and Innovation Policy (NATIP), which is designed to transform Nigeria’s agricultural landscape.
According to him, NATIP offers the strategic foundation to modernize the sector, introducing mechanization, digital agriculture, and strong research-commercialization linkages.
He said the policy is structured to make agriculture more tech-enabled, youth-driven, and competitive, aiming to unlock the full potential of young people and women across the value chain.
Kyari emphasized that transforming agriculture requires a system that rewards innovation, boosts productivity, and encourages ambition.
He highlighted that achieving meaningful outcomes would require the establishment of annual lending targets specifically for youth and women-led agribusinesses.
Furthermore, the minister pointed out that the new agricultural finance framework should shift from collateral-based lending to financing based on cash flows and business viability.
Kyari noted that successful agripreneurs should also be equipped with skills and tools necessary to effectively utilize and grow the capital provided.
He revealed that the initiative is already showing promise, reaching over 250,000 farmers across multiple states—a strong indication of the policy’s early momentum.
Kyari also mentioned the Federal Government’s launch of the National Agribusiness Policy Mechanism in May 2025, which is now being coordinated under the Presidential Food Systems Coordination Unit.
He stated that these efforts are in direct support of President Tinubu’s Renewed Hope Agenda, which positions food security and job creation as interconnected pillars for national development.
Kyari described food sovereignty as the right to feed Nigerians with locally grown, processed, and value-added produce, reducing reliance on imports and empowering local farmers, processors, and agribusiness operators.
Additionally, the National Agricultural Development Fund is forming strategic partnerships to finance climate-smart agriculture, rural logistics, aggregation centers, and storage infrastructure to increase value addition and competitiveness.
The recapitalisation, policy reforms, and infrastructure investments are collectively aimed at unlocking the full productive power of Nigerian youth and women in agriculture, while reinforcing the nation’s resilience through sustainable food systems.
