The European Union (EU) and the Federal Government of Nigeria have finalized a landmark credit agreement worth ₦320 billion (€190 million) to expand financing for the country’s agricultural sector.
The facility, to be administered through the European Investment Bank (EIB), aims to strengthen Nigeria’s agricultural value chains, particularly in cocoa, dairy, and other key commodities. It will provide affordable credit to farmers, cooperatives, and agribusinesses through Nigerian commercial banks and development finance institutions.
According to the EU, the initiative is designed to promote climate-smart agriculture, enhance food security, and boost the competitiveness of Nigeria’s agri-food industry. Beyond financing, the package also includes technical assistance and capacity-building programs to help de-risk agricultural lending and improve institutional capacity across the sector.
EU officials said the move underscores Europe’s commitment to supporting Nigeria’s economic diversification and rural development goals. The support aligns with President Bola Tinubu’s Renewed Hope Agenda and the government’s forthcoming National Development Plan (2026–2030), which prioritizes job creation and sustainable growth in rural areas.
Nigeria already benefits from other EU-backed initiatives, including an €18 million grant to strengthen vaccine regulation and a €50 million facility aimed at expanding credit access within the pharmaceutical industry.
The new agricultural credit line is expected to empower smallholder farmers, encourage private investment, and foster innovation in Nigeria’s food systems marking one of the most significant EU interventions in the country’s agricultural sector to date.
