How to Get Available Government Grants and Loans for Agriculture in Nigeria

agriculture in Nigeria

To farm or not to farm is no longer the question. Everyone realizes that among the various sectors of economic development in Nigeria, agriculture comes out top as the most viable. Agriculture has been identified as the largest employer of labor in Africa, particularly Nigeria. Many analysts have described the sector as a goldmine waiting to be fully explored.

− Information Resources −

We’ve Got E-Books and Business Plans for You!

They contain even more detailed information to start and run your business. No fluffs, just hardcore information you won’t find anywhere else.

Click Here to Get Them

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 rice, groundnut, cassava, cashew, cocoa, palm oil, to mention but a few, and you begin to get the picture – Agriculture in Nigeria is good 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 and, (2) how to raise capital to start an agriculture business.

A previous post has addressed the matter of what agriculture business to invest in, listing top 50 agriculture business ideas for smart entrepreneurs. In this post, we will explore some government grants and loans available for Nigerian farmers to keep their business booming.


One of the surest strategies any government can employ to encourage her citizens’ participation in farming and agricultural practices is creating avenues where they can access government loans and grants.

To fast-track the development of the agricultural sector, and to encourage farmers and investors to embrace agriculture, the federal government of Nigeria have set up different schemes and programs to provide funds in terms of 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 number of avenues the government has provided for individuals and corporate bodies to access agricultural loans. Some of them include;

  1. CBN agricultural loan to farmers in Nigeria.
  2. Bank of agriculture loan
Read This:  [Video] How to Apply for the Tony Elumelu Entrepreneurship Program 2018


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 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.


The Bank of Agriculture of Nigeria is the major avenue the government has employed to disburse loans and grant 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 activities of the bank are supervised by the Federal Ministry of Agriculture and rural development. When thinking of government loans, the BOA should be your first choice.


  • You must have maintained a minimum customer account relationship of about six months
  • You must have deposited at least 20% of the required loan amount into the account
  • You must provide collateral, excluding land.
  • You must provide a detailed business plan.

However the requirements for acquiring the loan are negotiable 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 means of acquiring 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 acquisition of loans. Some of the commercial banks you can approach to access loans are; Union bank, First bank, Zenith bank, UBA, and Stanbic IBTC.


Commercial banks also give loans to individuals and cooperatives for agricultural purposes. There are a variety of loan facility that you could apply for from commercial banks, this include; short-term loans, medium term loans, and long-term loans. The general requirement for all the commercial banks includes;

  • Open an account with the bank
  • Submit a loan application
  • Deposit at least 10% of the total money you applied for
  • Provide the bank with collateral
  • Provide a detailed business plan with complete feasibility study.
Read This:  10 Costly Mistakes Many Small Business Owners Continue to Make

To get more information about available government loans from commercial banks, you could approach any of the bank branches in your locality for more details.


The easiest and surest means of securing agricultural loans is through cooperative societies. Credits given to these societies come as grants. Generally, the banks provide the grants to the cooperative societies who then distribute it to each member on the basis of contributory payments.

Some of the most notable agricultural cooperative that you can join to access loans are; all farmers association of Nigeria (AFAN), youth empowerment in agricultural program (YEAP), and FADAMA. Here’s an article on how to get government grants for rice farmers in Nigeria under the FADAMA initiative.

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 writing with the cooperative letter head 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 quick thinking farmers have taken advantage of this opportunity; they are currently enjoying the benefits. You can get started today and enter your own world of wealth.

− Complete Video Course −

The ABC of Mini-Importation and E-Commerce

Follow this beginners video guide to learn how to start your own importation business and how to sell your items online.

Click Here to Learn More

Post a comment to let me know your thoughts or questions.

Was this post helpful? Share it with your friends on social media.



  1. A grant is one of the ways the government funds ideas and projects to provide public services and stimulate the economy.

  2. To be candity, as fantastic as government has lucrative policies/ good plans for farmers.
    The questions now :
    Is the well implemented?
    I the season practical peasant farmers access to the loans / gran in question?
    Is it not political farmers who can not boast half plot of farming land that were beneficiaries while those merit by all justifications denied because fatherism?
    Is it not the specified or disighnated Bank like BOA, BOI, and some selected Commercial Banks for instance First Bank, UBA, GTB who set high standards conditions & cateria which the peasant farmers cannot fulfill but to convert the funds to commercial loans for able firms who can avoid 2 digits compound interest charges ranging from 23 – 25% interest monthly without muritarium grace of six months as the policy ststed for Agricultural facilities.
    Most Agricultural Cooperatives have been frustrated due to unpalatable conditions which put them off after selfless efforts, but risk of life in the world course of negotiations between the Bank management and Cooperativs leaders.
    It’s rather unfortunate that government efforts is not yield muximun results due to inserity of political leaders, banks top officials even the so called Cooperatives Executives who will sign MOU on behalf of their prospects members but later disappointed them. What a defraud leaders!!!
    Anyway, personally, I can boast of more than four thousand registered Cooperatives with the Lagos State Ministry of Trade and Cooperative Alausa, Ikeja.
    We operate across the state and national level.
    Though everybody has be playing their roles according to their conscience. May Almighty God delivers our Agricultural sector from total coulaspe or complete down ? fall.
    Nevertheless, I still commend both federal states government’s for their good efforts to make food available on every households but we should equally respocate with good intentions to make the dreams reality. Pls mind my grammar the spirit behind the comments matter most
    From Epe

  3. Well-done this is a great benefits for the farmers and more so what about the individuals that also have interest but not a farmer how could them benefit from this great opportunity.

  4. Good job, please is it possible for me to access the agricultural grant , even when I don’t have any money and I am interested in fish farming on a large scale.

    • Hello Olumide,

      The real question should be why anyone would give you money to start a large-scale fish farm for the first time when you have not run it on smaller scale to start with. Think about it.

      I suggest you try to start a small fish farm, no matter how small. Then experience and management would count in your favor and increase your chances of getting a bigger grant to do something larger.

      Good luck!

  5. Am an agricultural and bio-environmental engr.who has a small poultry and piggery farms,how can I get grants from the federal government in order to boost my farm.

  6. How can I get loan I am from northern Nigeria and I want to grow soya beans at large scale because I have tried small scale and it worked.. I am a youth..

  7. I’m a catfish farmer business man,I’m into it since mwrch 2014 and the business was started with 1500 stocked of fingerllins but I’m coveniently stocking 3600 presently I growth the business to that number ot fingerllins through the profit I realized on it .I just got a plot of land for this business but I’m not financially bouyant enough to start building farm on this land and expand my farm as fast as I want that’s why I need the grant loan to achieve my dream as soon as possible

  8. The most likely global effect of covid 19 on the world and in particular Nigeria, is food supply shortage is some drastic steps are not taken to speed up food production. At my secondary school age,my parents practised poultry farming and I studied agricultural engineering in school. The Nigerian labour market pushed me to sales and marketing but I kept practicing subsistence farming, delving into fish farming and maintaining a sizeable farm of poultry esp around festive periods. Studying the situ ahead now gives a positive urge to go fully into poultry and some arable crop production. But I lack the financial might to take off. Where do I start from?

  9. I am Joy essien
    I still a student in a tertiary institution
    I want to start a small scale farming business
    I am young Nigerian…and I have the vision of going into the agricultural sector and success but I don’t know how I can get a loan to start one for now

  10. Accessing loans from banks and these cooperatives is difficult, the process is just too hard and stressful. Somebody without a collateral or who cannot meet all the demands are denied of assistance. Please we need financial help you people should make it easier for us.
    I have been on this issue of getting a loan for more than two years. I want to go into farm business, I already started with palm fruit oil production business, I need capital to finance it please help.

  11. Hello,

    I am looking to speak to someone about agriculture loans, l have a serious project that can contribute to massive job employment for my state. l need ask questions and more information on how l can go about it.


Please enter your comment!
Please enter your name here