The Federal Government of Nigeria has secured a $134 million loan facility from the African Development Bank (AfDB), marking a significant step toward transforming the nation’s agricultural sector. The funds are aimed at strengthening agricultural production, improving food security, and fostering economic growth across Nigeria.
This substantial financial commitment aligns with Nigeria’s ongoing efforts to diversify its economy and reduce dependency on oil revenue. The government plans to channel the funds into projects that will increase crop yields, improve infrastructure in rural areas, and support smallholder farmers who form the backbone of Nigeria’s agricultural industry.
Announcing the loan agreement, a government spokesperson highlighted that the partnership with AfDB would allow Nigeria to address some of the key challenges hindering agricultural productivity, including inadequate irrigation systems, outdated farming techniques, and limited access to finance for rural farmers. The initiative is expected to create jobs, reduce poverty, and stimulate economic activity, particularly in rural areas.
President Bola Tinubu has expressed optimism about the loan’s potential impact on the sector. “This support from the African Development Bank represents a new chapter for Nigeria’s agriculture. We are committed to using this facility to drive change, empower our farmers, and ensure food security for all Nigerians,” he said in a statement.
The AfDB, a prominent financial institution dedicated to promoting sustainable development across Africa, has been a longstanding supporter of Nigeria’s development goals. According to AfDB officials, the loan will fund a multi-pronged approach to agriculture, including investments in technology-driven farming practices, climate-resilient infrastructure, and capacity building for farmers.
The $134 million loan will be disbursed in phases, with an emphasis on accountability and transparency in its implementation. The Federal Government has also established a monitoring framework to ensure that the funds are utilized effectively and achieve the desired results in boosting food production and supporting economic diversification.
This development signals an encouraging step toward revitalizing Nigeria’s agricultural sector and ensuring the nation’s food security. With the support of AfDB, Nigeria is poised to make strides in agricultural innovation, job creation, and sustainable development for its growing population.