BOA Expands Smallholder Farmer Finance Through Value Chains

By Ayo Susan

The Bank of Agriculture (BOA), in partnership with WACOT Limited, launched the Renewed Hope Smallholder Farmer Support and Value Chain Programme in Jigawa State to strengthen agricultural productivity and food security through integrated financing and value chain support. Speaking on behalf of Ayo Sotinrin, Managing Director of BOA, Tosin Salami, Executive Director of Operations and Technology, said that the programme combines affordable credit, improved farm inputs, extension services, agronomic support and guaranteed off-take opportunities. The initiative targets more than two million smallholder farmers across over 20 states, beginning with 200,000 beneficiaries this farming season, with financing provided at a nine percent single-digit interest rate.

DECISION HIGHLIGHT

The BOA is shifting agricultural finance from input lending towards integrated value chain financing designed to improve productivity, market access and farmer incomes.

DECISION MEMO

The programme signals a broader evolution in agricultural financing by combining credit with production support and guaranteed market access.

Rather than providing isolated farm loans, the BOA is adopting a value chain approach that addresses multiple constraints limiting smallholder productivity. Access to quality inputs, technical advisory services and structured off-take arrangements reduces production and market risks simultaneously, improving the prospects for higher farm incomes and loan repayment.

The productivity targets underline the programme’s ambition. Raising yields from one to one-and-a-half tonnes per hectare to between three and five tonnes suggests that improved farming practices are expected to generate stronger returns than financing alone could achieve.

The partnership with WACOT Limited also strengthens commercial sustainability by linking farmers directly to organised agricultural markets, reducing post-harvest marketing risks while supporting export-oriented value chains such as sesame, rice and soybean.

Salami said that the programme “offers more than farm inputs”, combining financing, extension services, agronomic support and market access to improve productivity and farmer incomes.

Naveen Chaurasia, Managing Director of WACOT Limited, said that the company remains committed to supplying quality inputs and promoting better agronomic practices through structured out-grower schemes.

Representing the Gumel Emirate Council, Alhaji Musa Ayuba welcomed the initiative, describing it as a major boost for farming communities. He expressed confidence that the programme would strengthen sesame production, support the local economy and increase Nigeria’s foreign exchange earnings through higher agricultural exports.

DATA BOX

• Programme: Renewed Hope Smallholder Farmer Support and Value Chain Programme
• Implementing partners: Bank of Agriculture and WACOT Limited
• Launch location: Jigawa State
• Target beneficiaries nationwide: Over 2 million farmers
• States covered: More than 20
• Current farming season target: 200,000 farmers
• Dry season target: 500,000 farmers
• Women beneficiaries: More than one-third
• Fertiliser and improved seeds: Over 10 million bags
• Input package value per farmer: About N500,000
• Loan interest rate: 9 percent
• Loan tenor: Nine months
• Target yield improvement: From 1 to 1.5 tonnes per hectare to between 3 and 5 tonnes
• Expected farmer income: Around N1.5 million per season

WHO WINS / WHO LOSES

Wins

• Smallholder farmers
• Women farmers
• Agricultural input suppliers
• Commodity value chains including sesame, rice and soybean
• Agribusinesses linked to structured off-take arrangements

Loses

• Farmers without access to organised value chains
• Producers relying on low-quality farm inputs
• Informal agricultural markets with limited commercial integration

POLICY SIGNALS

• Agricultural policy is increasingly integrating finance with market access.
• Value chain development is becoming central to food security strategy.
• Single-digit agricultural lending remains a priority for productive sectors.
• Irrigation expansion is intended to support year-round agricultural production.

INVESTOR SIGNAL

The programme reinforces policy support for commercial agriculture and structured commodity value chains. Investors should monitor implementation, loan recovery, productivity gains and expansion into irrigation, as successful execution could strengthen agribusiness opportunities, agricultural processing and export-oriented supply chains.

RISK RADAR

• Loan repayment performance
• Distribution efficiency of farm inputs
• Weather and climate risks
• Adoption of improved farming practices
• Off-take market execution
• Irrigation infrastructure rollout
• Commodity price volatility
• Programme scalability across participating states