The Federal Government, through the Bank of Agriculture, plans to support more than 1.2 million farmers during the current wet season using a package of interventions. The bank's Managing Director, Ayodele Sotinrin, announced the measures in a statement issued on Tuesday by Ruth Didam, Team Lead, Corporate Communications Department. The initiatives align with President Bola Tinubu's agricultural agenda, targeting food security, higher farmer incomes and broader financial inclusion.
Mechanisation is a central component, with the bank deploying 2,000 tractors sourced from Belarus. These tractors have been assigned to service providers capable of mechanising at least 600 hectares each. Nigeria's current tractor density stands at 0.27 per 100 square kilometres, a figure the government aims to improve. The programme is expected to directly benefit over 1.2 million farmers in the ongoing farming season.
A Guaranteed Minimum Price mechanism will be introduced for staple crops including maize, rice, soybeans and cassava. Under this arrangement, the government will set a price floor to close the gap between production costs and farm-gate prices. The Bank of Agriculture will buy excess produce from farmers to reduce post-harvest losses and store the commodities in the country's 33 silos for future price stabilisation.
The bank has moved away from direct micro-credit to a digital ecosystem managed by farmer aggregation companies. Using BVN and NIN verification tools, the bank can open accounts for farmers within minutes, ensuring funds reach actual producers. Sotinrin said this reduces middlemen interference and improves access to financial services.
A ginger revival programme has also been launched after a fungal infection severely affected the crop in 2023. The programme will replace traditional replanting with tissue culture technology. The goal is to grow the ginger sector from a $300 million industry to a $3 billion export venture by 2028.
The Bank of Agriculture is promising price guarantees and mechanisation for 1.2 million farmers while relying on service providers to deliver tractor access, not direct ownership. If farmers must depend on intermediaries with 600-hectare capacity to benefit, many smallholders may never see the tractors. The same middlemen the digital account system aims to bypass could end up controlling the very machines meant to liberate rural producers.
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