FG Allocates N132bn to Support Smallholder Farmers, Strengthen Agriculture Sector in 2025

The Federal Government has allocated N132 billion in the 2025 budget to transform Nigeria’s agricultural sector by supporting smallholder farmers and enhancing productivity. 

The funds will be directed towards providing improved seeds, fertilisers, modern farming tools, mechanised equipment, storage facilities, and irrigation systems.

However, farmers will gain access to grants, subsidies, and credit through microfinance banks and cooperative societies.

This initiative, part of the 2025 Appropriation Bill, aligns with the National Agricultural Development Fund (NADF), which was established in October 2022 under former President Muhammadu Buhari. 

The NADF is designed to channel critical financial resources into crop production, livestock, fisheries, poultry, and agroforestry, with the goal of ensuring food security and sustainable agricultural growth.

Experts have praised the initiative, noting that it represents a bold step towards revitalising the sector by addressing key barriers, including limited access to credit, poor infrastructure, and climate-related challenges. 

With smallholder farmers comprising over 80 per cent of Nigeria’s agricultural workforce, the intervention is expected to boost yields, modernise farming practices, and improve the agricultural value chain.

Unekwuojo Onuche, an Associate Professor at the University of Africa, Bayelsa, expressed optimism about the fund’s potential but stressed the importance of transparency and efficient disbursement. 

“This could be a significant improvement over previous budgets if implemented effectively. The government must ensure that the intervention reaches the intended beneficiaries and is not diverted,” he said.

Joseph Deborah, an agricultural economist at the Federal University of Agriculture, Abeokuta, described the initiative as a positive development but cautioned that effective fund disbursement remains crucial. 

She recommended direct registration of farmers, strengthening oversight mechanisms, and ensuring timely release of funds to avoid delays and mismanagement.

However, the Federal Ministry of Agriculture and Food Security assured stakeholders that tackling long standing issues such as poor infrastructure and limited market access would pave the way for increased productivity, food security, and economic growth by 2025.