The Federal Government of Nigeria has disclosed that farmers accessed credit schemes totaling N3.4 trillion in 2025 to boost food production, though the sum represents less than 4% of agriculture’s contribution to the country’s GDP.
Minister of Agriculture and Food Security, Abubakar Kyari, who spoke at the Nigeria–United Kingdom Investment Forum in London, noted that access to finance remains a major constraint for farmers across the country, limiting productivity and growth in the sector.
“Despite the prevalence of credit schemes across the country, total credit accessible by farmers is still significantly limited, reaching 3.4 trillion as at April 2025. Whilst this value may look significant, it is less than 4% of the contribution of agriculture to the country’s GDP,” Kyari stated, as highlighted in a statement by Ezeaja Ikemefuna.
The minister called on investors, financial institutions, and development partners to collaborate with Nigeria in building a resilient food system, expanding sustainable agricultural production, promoting climate-smart farming, and unlocking the potential of Africa’s largest agricultural market.
Kyari highlighted the country’s agricultural potential, noting that nearly 70% of Nigeria’s labour force is employed in agriculture, which contributes over 24% to GDP and serves as a driver of inclusive growth, rural livelihoods, and employment for women and youth.
He emphasized that Nigeria’s diverse agro-ecological zones can support a wide range of agricultural value chains, including rice, maize, cassava, cocoa, sesame, sorghum, and horticultural crops. “Commodities consumed globally can be produced competitively within Nigeria’s diverse agricultural landscape,” he said.
The minister also warned that climate change continues to threaten agricultural productivity and food security in Nigeria through prolonged droughts, erratic rainfall, flooding, and desertification, underscoring the urgent need for climate-resilient agriculture.
To bridge the financing gap, Kyari stressed that while public funding remains essential, private capital and development finance partners must play a greater role in supporting food system resilience and scaling climate-smart technologies.
He further noted that, in response to these challenges, President Bola Ahmed Tinubu declared a national state of emergency on food security in July 2023. Subsequently, Vice President Kashim Shettima inaugurated the Presidential Food Systems Coordinating Unit (PFSCU) to ensure coordinated interventions across federal, state, and local governments.
Additionally, the government has initiated programmes such as distributing solar-powered irrigation pumps to smallholder farmers to enable all-season farming and improve water efficiency.
