Home News2026 Budget: FG to Focus on Agro-industrial Infrastructure Development Nationwide 

2026 Budget: FG to Focus on Agro-industrial Infrastructure Development Nationwide 

by AgroNigeria

The Federal Ministry of Agriculture and Food Security has proposed a capital expenditure of over ₦200 billion in the 2026 budget, with a strong focus on agro-industrial infrastructure and food security interventions nationwide.

Details from budget documents show that the largest allocation, ₦126.02 billion, is earmarked for the Multilateral/Bilateral Tied Loan for Special Agro-Industrial Processing Zones (SAPZ), underscoring the Federal Government’s push to industrialise agriculture and strengthen value addition across key production corridors.

Another major allocation is ₦37.5 billion for the Value Chain Development Project (VCDP), while ₦4.61 billion was set aside for the Rural Access and Agricultural Marketing Project (RAAMP). 

The ministry also proposed ₦5.67 billion for the construction of its headquarters office complex.

Food security measures feature prominently, with ₦3.15 billion allocated for grain supply to selected states and ₦3.5 billion provided under the Renewed Hope Initiative for agriculture-related interventions. 

In addition, ₦504 million was earmarked for the rehabilitation and calibration of Federal Government-retained silo complexes to support strategic food reserves.

Rural infrastructure development received significant attention, including ₦2.51 billion for feeder road construction across the six geo-political zones and ₦1.47 billion for the supply of tractors, implements and trucks to boost mechanisation. 

The budget also provides ₦1.05 billion for potable water projects in rural communities.

To strengthen productivity and exports, ₦1.06 billion was allocated to food security crop value chain programmes focused on export crops, while ₦942 million was set aside for extension services across agricultural value chains. 

Support for agricultural cooperatives received ₦766 million.

The proposal also includes substantial funding for agricultural education infrastructure, with multiple ₦1.4 billion allocations for hostels, laboratories, lecture theatres and perimeter fencing at federal agricultural institutions, alongside funds for staff residences.

Gender inclusion and rural livelihoods were addressed through ₦608 million for mainstreaming gender in agribusiness and ₦708 million for rural non-farm enterprise empowerment to support MSMEs nationwide. 

The ministry further allocated ₦1.26 billion for policy coordination, monitoring and evaluation, and ₦506 million for strategic agricultural communication.

Several constituency-specific projects, including grain supply, fertiliser distribution, solar energy and farm inputs, were captured in the budget, with Kebbi State emerging as a major beneficiary across multiple intervention lines.

Overall, the 2026 capital proposal reflects a broad strategy that combines large-scale agro-industrial infrastructure with targeted food security, rural development and institutional support programmes across the country.

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