The Federal Government has revealed that Nigerian farmers accessed a total of ₦3.4 trillion in credit schemes in 2025, a figure it says remains significantly low compared to the sector’s overall contribution to the economy.
Speaking during the Nigeria–United Kingdom Investment Forum in London, the Minister of Agriculture and Food Security, Abubakar Kyari, stated that the volume of credit available to farmers represents less than four percent of agriculture’s contribution to the nation’s Gross Domestic Product (GDP), highlighting a persistent financing gap within the sector.
He noted that despite the presence of multiple credit initiatives across the country, access to finance continues to limit productivity, growth, and scalability for farmers nationwide.
“While N3.4 trillion may appear substantial, it remains a fraction of what is required to match the sector’s economic output,” he said, stressing the need for increased financial inclusion and investment in agriculture.
Kyari emphasised that agriculture remains a cornerstone of Nigeria’s economy, employing nearly 70 percent of the labour force and contributing over 24 percent to GDP. He described the sector as a key driver of rural livelihoods, inclusive growth and employment for women and youth.Highlighting Nigeria’s vast agricultural potential, the minister pointed to the country’s diverse agro-ecological zones, which support the production of major commodities such as rice, maize, cassava, cocoa, sesame, sorghum and horticultural crops.
According to him, Nigeria possesses the capacity to compete globally in the production of these commodities.
However, he warned that climate change continues to pose significant threats to agricultural productivity, citing prolonged droughts, erratic rainfall, flooding and desertification as major challenges affecting food security.
He stressed that transitioning to climate-resilient agriculture will require substantial investment, noting that current funding levels fall short of what is needed to deploy climate-smart technologies and scale innovation across agricultural value chains.
The minister called on investors, financial institutions and development partners to deepen collaboration with Nigeria in building a resilient food system, expanding sustainable agricultural production and unlocking the full potential of Africa’s largest agricultural market.
He further disclosed that efforts are ongoing to address these challenges, referencing the declaration of a national state of emergency on food security by Bola Ahmed Tinubu in July 2023.
He added that the inauguration of the Presidential Food Systems Coordinating Unit by Vice President Kashim Shettima, was aimed at strengthening coordination of food security interventions across all levels of government.
Kyari also noted that the government has introduced initiatives such as the distribution of solar-powered irrigation pumps to smallholder farmers to support all-season farming and improve water-use efficiency.
Source: Agro Nigeria