The Bank of Agriculture (BOA), represented by its Managing Director/Chief Executive Officer, Mr. Ayo Sotinrin, has signed a landmark deal with African Export-Import Bank (Afreximbank), represented by the Executive Vice President for Intra-African Trade and Export Development, Mrs. Kanayo Awani. The agreement was finalised during the recently concluded and highly successful Intra-African Trade Fair (IATF) 2025 in Algiers, Algeria.
Under the agreement, BOA and Afreximbank will work together to mobilise up to US$1 billion for direct financial support for smallholder farmers and the entire agricultural value chain, from primary production to market, in Nigeria.
The partnership follows the approval granted by His Excellency, President Bola Ahmed Tinubu, GCFR, for the establishment of a National Food Security Fund, which will be a revolving matching fund in partnership with State Governments, called “The National Smallholder Farmers Fund”, and designed to close the systemic financial gap faced by Nigeria’s smallholder farmers by providing access to affordable credit for critical inputs, mechanisation, and structured market linkages.
By equipping farmers with access to capital and mechanisation equipment, the fund will enable increased productivity, value addition through processing, and stronger integration into national and continental markets. The importance of the partnership cannot be overstated. Nigeria’s smallholder farmers are responsible for over 90% of the nation’s agricultural output, yet struggle with inadequate access to finance, poor adoption of improved technologies and fragmented market access.
Speaking at the signing, Mr. Ayo Sotinrin noted that the deal is a strategic intervention designed to secure Nigeria’s agricultural future. “This is more than just a fund; it is a bold commitment to ensuring our nation’s food security,” he said. “By joining forces with Afreximbank, we are unlocking opportunities for smallholder farmers to move beyond subsistence farming into sustainable and profitable agribusiness.”
Commenting on the deal, Mrs. Kanayo Awani, Executive Vice President, Intra-Africa Trade and Export Development at Afreximbank, said: “Smallholder farmers are an essential part of the agricultural value chain and represent important contributors to the growth of the agro-industry sector. By partnering with BOA to support the National Smallholder Farmers Fund, Afreximbank is supporting BOA to deliver greater impact in Nigeria’s quest for food security and economic development. The Fund will provide critical liquidity and assuage the hardship faced by the smallholder farmers by extending crucial financing access to the previously underserved group.”
The Collaboration Agreement establishes a framework for exploring:
(i) Guarantee mechanisms whereby Afreximbank would provide guarantees for loans disbursed by BOA, thus reducing credit risk and extending financing access to previously underserved smallholder farmers; and (ii) Currency swap arrangements to enable dollar denominated funding from Afreximbank to be efficiently converted to local currency for on-ward lending to the farmers by BOA. By implementing this mechanism, the partnership will facilitate easier access to international capital markets, while shielding smallholder farmers from the risks associated with exchange rate fluctuations.
This landmark agreement between the Bank of Agriculture and Afreximbank aligns with the Renewed Hope Agenda of His Excellency, President Bola Ahmed Tinubu GCFR. Under his leadership, and with the unwavering support of the Federal Government, this partnership stands as a bold step towards accelerating the empowerment of Nigeria’s smallholder farmers and achieving national food sovereignty.
The just ended fourth Intra-African Trade Fair (IATF2025) was a huge success, exceeding all its targets. The event drew over 112,000 participants, both in person and online, and generated more than US$48 billion in trade deals. It featured over 2,100 exhibitors and was attended by 20 Heads of State and Government representatives, along with several ministers and other senior government officials,
captains of industry and other participants from 132 countries across the world.
About the Intra-African Trade Fair
Organised by African Export-Import Bank (Afreximbank), African Union Commission (AUC) and African Continental Free Trade Area (AfCFTA) Secretariat, the Intra-African Trade Fair (IATF) is intended to provide a unique platform for facilitating trade and investment information exchange in support of increased intra-African trade and investment, especially in the context of implementing the African Continental Free Trade Agreement (AfCFTA). IATF brings together continental and global players to showcase and exhibit their goods and services and to explore business and investment opportunities in the continent. It also provides a platform to share trade, investment and market information with stakeholders and allows participants to discuss and identify solutions to the challenges confronting intra African trade and investment. In addition to African participants, the Trade Fair is also open to
businesses and investors from non-African countries interested in doing business in Africa and in supporting the continent’s transformation through industrialisation and export development.
Media contact: media@intrafricatradefair.com / press@afreximbank.com
About the Bank of Agriculture
The Bank of Agriculture (BOA), owned by the Federal Government of Nigeria through the Federal Ministry of Finance Incorporated and the Central Bank of Nigeria, is the country’s leading Development Finance Institution for agriculture and rural development. Established in 1972, BOA provides credit, capacity development, and financial inclusion services to boost agricultural value chains, create rural jobs, and drive sustainable economic growth. The recent appointment of its new Managing Director and CEO marks a pivotal moment for the bank, as he is tasked with transforming it into a modern, forward-thinking institution aligned with other leading Development Finance Institutions (DFIs) across Nigeria and the continent. Guided by its mission to stimulate agriculture, improve lives, and grow communities, BOA envisions becoming Africa’s foremost institution in agricultural value chain financing.
For more details, visit: https://boanig.com/
