Accessing Agricultural Loans in Nigeria: A Complete Guide

Access to credit is consistently cited as the number one constraint facing Nigerian farmers. The good news is that more financing options exist today than at any previous time — including several with below-market interest rates specifically designed for agriculture.

CBN Anchor Borrowers' Programme (ABP)

The Central Bank of Nigeria's Anchor Borrowers' Programme provides loans to smallholder farmers growing specific commodities (rice, maize, cotton, cassava, wheat, and others). Loans are disbursed in kind — inputs are delivered, not cash — and repaid with a portion of the harvest through designated commodity aggregators. Interest rates are subsidised at 9 percent per annum. Apply through your state's Participating Financial Institution (PFI) or through registered Farmers' Associations that serve as aggregators.

NIRSAL Microfinance Bank

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) operates a dedicated microfinance bank with agricultural loan products. Minimum loan: ₦50,000. Maximum: ₦3 million for smallholders. Interest rate: 9% per annum. Requirements include BVN, a farm plan, and group membership in most cases. Apply online at www.nirsal.com or visit any NIRSAL branch.

Bank of Agriculture (BOA)

BOA offers medium- and long-term financing for larger agricultural investments including processing equipment, cold storage, and commercial farms. Interest rates range from 10–15 percent. Requirements include a bankable business plan, land documentation, and collateral.

State Government Programmes

Many state governments run their own agricultural loan and input subsidy programmes. These vary significantly in availability and quality. Contact your State Agricultural Development Programme (ADP) office for current offerings in your state.

Cooperative Groups

Forming or joining a registered cooperative is the most accessible route to credit for farmers without formal collateral. Cooperatives can access group loans at better terms than individuals and provide internal peer accountability that reduces default risk.

Preparing a Strong Application

Regardless of which programme you apply to, your application will be stronger with:

• A simple farm business plan (2–3 pages covering your farm size, planned crop, expected costs, and expected revenue)
• Historical production records if available
• Land documentation (Certificate of Occupancy, tenancy agreement, or Customary Right of Occupancy)
• BVN and valid ID
• References from a local farmers' association or cooperative

Start small. A ₦200,000 loan successfully repaid opens the door to ₦2 million the following season.