FG Secures $183.1 Million Loan to Boost Agricultural Value Chains in Northern Nigeria

The Federal Government of Nigeria has secured a $183.1 million financing agreement to strengthen agricultural value chains and improve rural livelihoods across nine northern states.

This major initiative, titled the Value Chain Programme in Northern Nigeria (VCN), is designed to combat poverty, food insecurity, and climate vulnerability through inclusive agricultural development.

The funding for the eight-year program will be jointly provided by the International Fund for Agricultural Development (IFAD) with $86.7 million, the French Development Agency (AFD) with $78.2 million, while the Nigerian government and participating states will contribute $12 million and $8 million respectively.

The VCN will focus on Borno, Bauchi, Kano, Katsina, Kebbi, Jigawa, Sokoto, Yobe, and Zamfara states—regions particularly affected by climate change, conflict, and food insecurity.

According to the Federal Ministry of Agriculture and Food Security, the program is expected to directly benefit around 456,000 smallholder farmers and rural entrepreneurs. Of these, 40% will be women, 60% youth, 10% persons with disabilities, and 5% internally displaced persons (IDPs) or returnees.

Indirectly, the initiative will impact approximately 3.1 million household members.

Minister of Agriculture, Senator Abubakar Kyari, stated that the project will “strengthen value chains, increase productivity, promote climate-smart farming practices, and improve access to markets.”

The program aligns with Nigeria’s broader national policy frameworks, including the Presidential Emergency Declaration on Food Security, the National Agricultural Technology and Innovation Policy (NATIP), and President Bola Ahmed Tinubu’s Renewed Hope Agenda.

The VCN is expected to commence in August 2025, following the signing of key agreements with IFAD and AFD.

This initiative follows recent investments of over $500 million mobilized by the Tinubu administration to support the agricultural sector, including the development of Special Agro-Industrial Processing Zones (SAPZs) and partnerships with global agribusiness leaders such as OLAM.

Analysts believe the VCN has the potential to transform food systems in Nigeria’s northern region, boost exports, and significantly improve the livelihoods of millions of rural Nigerians.