Agricultural grants in Nigeria 2019: how to get it and use wisely?

To farm or not to farm is no longer the question. More people are realising that among the various sectors of economic development in Nigeria, agriculture comes out on top as the most profitable. Agriculture has been identified as the largest employer of labor in Africa, particularly Nigeria. A lot of analysts called this sector a gold mine, awaiting to be fully explored.

Agricultural loans in Nigeria

The available land for farming activities in Nigeria is simply overwhelming. A recent report revealed that Nigeria has about 84 million hectares of arable land, of which only about 40% has been cultivated. Add our favorable climatic conditions that sustain the growth of agricultural products such as groundnut, rice, cassava, cocoa, cashew, palm oil, to mention but a few, and you begin to get the picture – Agriculture in Nigeria is a profitable business.

The problem young people face when they think of going into entrepreneurship is no longer whether agriculture business is worth investing in. The problem is twofold:

  1. What type of agriculture business to start?
  2. How to raise capital to start an agriculture business?
    In this post, we will explore some government grants and loans available for Nigerian farmers to keep their business booming.

Government Loans And Grants In Nigeria


One of the most reliable strategies that any government can use to encourage its citizens’ participation in agricultural practices and farming is creating avenues where they can access government grants and loans. To fast-track the development of the agricultural sector, and to encourage farmers and investors to embrace agriculture, the federal government of Nigeria has set up different schemes and programs to provide funds regarding loans and grants to large and small-scale farmers.

These credit facilities are made available by the federal government to the public and cover a range of agricultural practices including crop cultivation and livestock rearing. There are a lot of avenues the government has provided for individuals and corporate bodies to access agricultural loans. Some of them include:

  • CBN agricultural loan to farmers in Nigeria.
  • Bank of Agriculture loan

1. CBN agricultural loan

This loan scheme was set up by the federal government to provide low-interest loans to farmers in Nigeria. To achieve this, the Central Bank of Nigeria (CBN) has recently approved the disbursement of about 75billion naira as the loan to farmers and cooperative societies in the 36 state and the Federal Capital Territory (FCT). This loan can be accessed directly from the Bank of Agriculture.

2. Bank of Agriculture (BOA) loans

The Bank of Agriculture of Nigeria is the main channel that the government uses to provide loans and grants to the public. The bank is owned by the federal government, with the Central Bank of Nigeria and the Federal Ministry of Finance incorporated as shareholders. The bank’s activities are controlled by the Federal Ministry of Agriculture and Rural Development. When thinking of government loans, the BOA should be your first choice.

Requirements for Bank of Agriculture (BOA) LOANS

  1. You must submit a detailed business plan
  2. You must have maintained a minimum customer account relationship for about six months
  3. You must have deposited at least 20% of the required loan amount into the account
  4. You must provide collateral, excluding land.
    However, the requirements for obtaining a loan are subject to negotiations and may depend largely on the feasibility of your agricultural venture. Further details about the BOA loans are available on the BOA website.
    Apart from the BOA, there are other ways of acquisition of agricultural loans.
    The federal government through the Bank of Agriculture and the bank of industries have partnered with different commercial banks to help farmers with the acquisition of loans. Some of the commercial banks you can approach to access loans are:
    1. Union Bank;
    1. First Bank;
    1. Zenith Bank;
    1. UBA;
    1. Stanbic IBTC.

Requirements for accessing loans from commercial banks

Commercial banks also give loans to individuals and cooperatives for agricultural purposes. There is a variety of credit facility that you could apply for from commercial banks, this include:

  • short-term loans;
  • medium-term loans;
  • long-term loans.

The general requirement for all the commercial banks include:

  1. Open an account with the bank;
  2. Submit a loan application;
  3. Deposit at least 10% of the total money you applied for;
  4. Provide the bank with collateral;
  5. Provide a detailed business plan with a complete feasibility study.
    For more information on available government loans from commercial banks, you can contact any branch of the bank in your area for more information.

3. Agricultural co-operative societies


The easiest and surest means of securing agricultural loans is through cooperative societies. Credits given to these communities come as grants. As a rule, the cooperative societies could be provided with the grants by the banks who will then distribute it to each member on the basis of contributory payments.
Some of the most important agricultural cooperatives that you can join to access loans are:

  1. All Farmers Association of Nigeria (AFAN);
  2. Youth Empowerment in the Agricultural Program (YEAP);
  3. FADAMA.

Accessing government loans and grants from banks by cooperative societies are relatively simpler – the basic requirements include:

  • Form a cooperative society;
  • Submit a loan application I writing with the cooperative letterhead to the bank. The application should be signed by the cooperative’s representative;
  • Submit a detailed feasibility study on the business.
    The federal government is paying increasing attention to the agriculture sector by making loans and grants available. Many savvy farmers have taken advantage of this opportunity and now simply enjoying the benefits. You can get started today and enter your own world of wealth.

Source:Legit.ng

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How about the grants? Some of have try the loan thing and it didn’t work. Most times we end up getting nothing, i applied for the cbn anchor borrower through unity bank and at the end we’re giving part of the input only, now we are being notifie to come and pay back, should i now buy the items and return it back to them or how?

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Hello Shehu,

There are much more grants coming up you can also apply for. So please keep trying and applying… :slightly_smiling_face:

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Okay, Tecfarm, lets keep our fingers cross. Thanks.

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Kindly inform me of the grants when they are announced.

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Sure… You will be notified.

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Please is there an available grant yet?

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It is highly being expected in Nigeria

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Hello @winnesmith1, You can check through the available funds on our media page here;

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Kindly notify me too. Thanks

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Ask them to tell you the source of the fund. Then all of you come together to approach the fund donor for a negotiation.

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Pls how can I apply for the Grant loan pls help me and put me

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Pe
Please notify me about and grant that comes up

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Hello @Ozochukwu, Guess you’re good? We once had an online chat here on the community on this topic. You can go through the chat via the link below to learn more about how to apply for grants.

It would really help. :blush:

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Hello @Bestnaomi, Sure thing we will notify you… :slightly_smiling_face: For now, you can go through the funds category on our media page;

Do let me know if it helps…

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When we are talking about loans and grants which the farmers needs that’s very good to hear .
But the government and other private bodies are falling in the aspects of the Agribusiness sector of it .After the farmers have labour through the season harvesting there is no a enough market to sell their farm produce which now to post harvest which not friendly to the vegetable iterms except grains .

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This is really good, i would like to if any grant is available.Thanks guys :+1:

Hello sir/ma, pls am new here and am just starting a pig farming. I will be should u give me any available info on grant.
Thanks and I look forward to read from u.
Alabama.

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Hello Sir, please am new here and very much interested in agric grants. Kindly notify me when there’s any available. Thank you.

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