Over $600 Million in Foreign Agricultural Loans Secured by Nigerian Government
In a bid to promote rural development and food security, the Nigerian government has secured over $600 million in foreign agricultural loans through the Ministry of Agriculture and Food Security in 2024.
The Ministry of Agriculture and Food Security announced that they have obtained a $134 million financing facility from the African Development Bank to boost the country’s production of grain and seeds.
“The Nigerian government has secured a loan facility of $134 million from the African Development Bank to help farmers increase seed and grain production in the country,” the statement read.
Additionally, through the Rural Access and Agricultural Marketing Project (RAAMP), the government has secured a $500 million loan from the World Bank, bringing the total amount to $634 million.
The RAAMP project aims to promote social and economic growth in rural areas by improving access to hospitals, schools, and agricultural hubs. It also seeks to bridge the gap between rural communities and larger markets.
One of the key requirements for states to receive RAAMP funding is the establishment of operational road funds and road agencies, as stated by Aliyu Abdullahi, Minister of State for Agriculture and Food Security.
Aminu Mohammed, the RAAMP National Coordinator, highlighted the project’s focus on rural infrastructure, stating, “Improving rural roads and trading infrastructure is the main goal of RAAMP to increase food production.”
The initiative is currently active in 19 states and will allocate funds based on socioeconomic factors, implementation readiness, and state co-finance commitments.
The project also aims to enhance women’s representation in the transport industry by developing rural access road authorities.
For the second phase of RAAMP, the World Bank will contribute $500 million, with the federal and state governments providing $100 million in matching funds.
Despite the government’s efforts to boost agricultural activities through mechanization, irrigation facilities, and financial support, many farmers in Nigeria have criticized the initiatives as selective and poorly executed.
La’ah Dauda, a farmer from Kaduna, expressed his concerns, stating, “The initiatives are very selective, and even the data is scarce. They focus only on certain areas, neglecting smallholder farmers who are the backbone of Nigeria’s agriculture. How can we attract new farmers if others are left out?”
