Nigeria secures $134 million loan for agriculture

The Nigerian Government has secured a $134 million loan from the African Development Bank (AfDB) to strengthen its agricultural sector amid growing food insecurity concerns. This funding aims to increase seed and grain production and improve food security, according to a statement of the Agriculture ministry on November 14.
A recent “Harmonized Framework” report, prepared by Nigerian officials, UN agencies, and humanitarian NGOs, warned that over 33 million Nigerians might face hunger next year. The agricultural sector is struggling with rising food prices, fueled by the naira’s depreciation and higher fuel costs following recent reforms under President Bola Ahmed Tinubu’s administration. Food inflation reached 37.77% in September, with beans prices up by 282% and local rice by 153% over the past year.
Insecurity also disrupts farming in northern Nigeria, where Islamist insurgencies, banditry, and kidnappings make agriculture risky. Environmental factors like desertification and recent flooding of 1.6 million hectares of farmland have further worsened conditions.
The government plans to stimulate the economy by boosting production of staple crops such as wheat, rice, maize, sorghum, soybeans, and cassava. The AfDB loan will assist 250,000 wheat farmers and 150,000 rice farmers. To address food shortages, the government has temporarily lifted customs duties on some imports, while the UN has called on both Nigeria and international donors to increase support to combat the crisis.