Step-by-Step Guide to Accessing Agricultural Loans in Nigeria

What business thrives without access to capital? Certainly not an agribusiness. In Nigeria, where agriculture remains the backbone of livelihoods and food security, limited access to finance has kept many farmers and agripreneurs stuck in survival mode. Instead of expanding operations or investing in better tools and practices, they’re forced to make do with what little they have.

But the tide is changing. In this article, we’ll explore the most accessible agricultural loan schemes in Nigeria and provide a clear, step-by-step guide to help you apply, qualify, and secure the funding you need to grow your agribusiness.

Key Agricultural Loan Schemes in Nigeria

Anchor Borrowers’ Programme (ABP)

The Anchor Borrowers’ Programme, launched by the CBN in 2015, links smallholder farmers to large agribusiness “anchor” companies (e.g. agro-processors or commodity buyers). Under ABP, anchors provide inputs (like seed or fertiliser) and guarantee to buy the harvest; in turn farmers get low-interest loans from banks. This model ensures a ready market for produce and shared risk. ABP covers many commodities (rice, maize, sorghum, etc.) and aims to boost production, jobs and food security.

To apply for ABP, farmers must organise themselves under an approved anchor. In practice, smallholders join a farmers’ group or co-op affiliated with an anchor company. The anchor vets the farmers and connects them with a Participating Financial Institution (PFI, usually a bank). The PFI then applies to CBN for the loan on behalf of the farmers. Note the eligibility rules: farmers must have a valid bank account (with BVN) and not already be indebted under another CBN intervention. (Also, a single farmer can be an anchor if they farm at scale.)

In short: find an anchor (or form a group) for your crop, open a BVN-linked account if you don’t have one, and approach a participating bank. The bank will assess your group’s crop plan (costs per hectare, etc.) and forward the loan request to CBN. Successful ABP loans are typically disbursed in kind (inputs) or cash at below-market rates, helping farmers invest in the coming season.

NIRSAL Microfinance Bank (NMFB) & CBN-Backed Schemes

The NIRSAL Microfinance Bank is a non-bank financial institution (100% owned by CBN) dedicated to agricultural and SME lending. It channels several CBN initiatives and its own loan products to farmers and agripreneurs.

• AGSMEIS (Agric SME Scheme): Administered by the Bankers’ Committee/CBN and delivered via NMFB, AGSMEIS offers affordable loans up to ₦10 million at around 5% interest (5-year tenor, 18-month moratorium) to agribusiness SMEs. The loan covers businesses across the agricultural value chain and other major sectors. To apply, youths typically must attend a short entrepreneurship course at an accredited institute (many state ministries run these). For example, Lagos State requires applicants to complete a one-week training and upload the certificate on NMFB’s portal. After training, applicants go online to the NMFB portal, select their entrepreneurial development institute (e.g. Lagos Agric), and upload the course certificate. The NMFB (under supervision of CBN) then processes approved applications and disburses funds.
  
• Agricultural Finance Facility (AFF): This NMFB loan targets a wide range of farming activities (crop farming, livestock, aquaculture, etc.) with longer tenors (often 3–5 years) at single-digit rates. (Exact rates can vary; in 2023 NMFB offered some farm loans around 9% interest.) While details for AFF change over time, the general steps are: be an existing or new NMFB customer, register your farm business, and apply via NMFB’s loan portal or branch. You’ll need a viable project plan and valid documents. NMFB may require equity contribution or guarantors depending on the risk. (Online guides stress that simply applying doesn’t guarantee approval – only well-qualified applicants are funded, so get your paperwork in order.)
  
• Other NMFB/CBN lines: NMFB also runs the Consumer Assets Finance Facility (CAFF) for purchasing farm equipment or solar kits, among others. Separately, the CBN’s N50 billion Non-Interest Credit Facility (COVID-19 relief) was delivered through NMFB but is now closed.
  

Bank of Agriculture (BOA) Loans

The Bank of Agriculture (BOA) is Nigeria’s apex agricultural development bank (100% federal govt-owned). Its mandate is “to provide credit to support all activities in the Agricultural Value Chain”. With over 130 branches nationwide, BOA serves farmers across Nigeria. Individuals can obtain loans up to ₦5 million (especially for smaller agri projects), while co-ops and enterprises can access larger facilities. BOA even offers microcredit to non-agri micro businesses as a secondary mandate.

BOA’s product range is broad. It offers microloans (for subsistence farmers and traders) and commercial agricultural loans (for medium/large projects). Microloans (to individuals or cooperatives) can fund things like livestock rearing or fish farming, crop planting, poultry, etc. In fact,  BOA explicitly lists livestock and fish farmers as eligible microcredit recipients These small loans usually need minimal collateral: for amounts less than ₦100k, only group guarantees are needed. At the other end, BOA’s commercial loans finance land acquisition, input procurement, equipment leasing, post-harvest storage, export finance and more. For these, the bank expects a feasibility report/business plan, audited accounts (if applicable), and some equity/collateral.

Other CBN-Backed Programs (CACS, ACGSF)

Beyond ABP and NMFB, the CBN has a few other niche schemes:

• Commercial Agriculture Credit Scheme (CACS): Intended for large commercial ventures, CACS offers single-digit loans (via Deposit Money Banks) to incorporated agriculture projects. Only corporate entities (Ltd. companies or state government bodies) qualify. Projects can use it for inputs, machinery (even imports), etc. CACS loans carry collateral requirements (per the lending bank’s standards). Tenors run up to 5 years (12-month working capital, up to 5 years for equipment). Loan limits are very large (up to ₦2 billion for private firms), so this is mainly for big agribusinesses, not smallholders.
  
• Agricultural Credit Guarantee Scheme Fund (ACGSF): This is a guarantee fund, not a lender. Under ACGSF (now called NIRSAL’s guarantee fund), the CBN guarantees up to 75% of losses on approved farm loans to incentivize banks. In practice, if you take an agri-loan from any commercial bank, that bank can submit it for a CBN guarantee. The borrower still applies through the bank, which will require collateral and due diligence as usual. Small farmers often benefit indirectly: for low-value loans (≤₦100k), guarantee terms allow cross-guarantees within cooperatives instead of bank collateral.
  
• Others: From time to time the CBN or FGN introduces special facilities (e.g. post-harvest storage loans, irrigation finance). Always check the CBN website or news updates for any new agriculture credit windows.
  

Nigeria Youth Investment Funds (NYIF)

Young agripreneurs have extra options. The Nigeria Youth Investment Fund (NYIF) (launched 2020 by FMYSD/CBN) offers interest-free or very low-interest loans to Nigerians aged 18–35, across all sectors including agriculture.  Eligible youths must have an operational business (or a formal enterprise) in Nigeria and be within the age bracket . Notably, NYIF requires applicants to undergo targeted training or mentoring (often arranged by a state youth office) before applying on the NMFB portal.

NYIF loans can go up to tens of millions (with group guarantees) but come with at most 5% interest and up to 5-year tenure There is a one-year moratorium allowed depending on your asset purchase. To apply, youths register on the NMFB portal, upload all documents (CAC for registered businesses, BVN, business plan, training certificate, etc.) and await appraisal. Those with any unpaid CBN or government loans (including other NMFB loans) are ineligible. Agriculture is explicitly listed as an eligible sector, so a youth farmer or tech startup in agri can tap NYIF to scale up.

How to Apply: Step-by-Step

1. Choose the Right Program. Start by matching your project to the scheme. Are you a smallholder farmer growing rice or maize under contract? Consider ABP. Are you a registered agri-business or cooperative (especially if incorporated)? Look at NMFB loans (AFF, CAFF, AGSMEIS) or BOA commercial loans. Are you a registered youth (18–35) entrepreneur? Consider NYIF or BOA’s youth products. If you’re a large agri-corporation, CACS might be best. Use official guides (CBN or NMFB sites) to confirm your choice.
   
2. Ensure Basic Eligibility. For most loans, you need a valid bank account and Bank Verification Number (BVN). Check age (NYIF: 18–35), company status (CACS: must be limited liability company), and prior loan status (clear any unpaid government loans). For ABP, gather 20+ farmers and pick an anchor company to partner with.
   
3. Prepare Documentation. Common requirements include: proof of identity (ID card, passport), CAC documents for businesses, recent bank statements, tax clearance, and a detailed business plan or feasibility study. If applying through a farmer’s group, also get the group’s registration letter and evidence of land size. For program-specific needs: e.g. AGSMEIS requires a training certificate from an accredited Institute; ABP requires each farmer’s BVN and a group account; NYIF requires proof of youth age, valid BVN, and (if formal) CAC documents. Collateral may be needed for larger loans – prepare to offer land titles or a General Standing Instruction (GSI) on your account as demanded.
   
4. Apply via the Official Channel.
   
   • CBN/ABP: Talk to your anchor and a bank (PFI) to submit an ABP loan application. The bank will do due diligence on your group and forward the package to CBN.
     
   • NMFB Loans (AGSMEIS, AFF, etc.): Create an account on the NMFB loan portal (nmfb.com.ng) and select the relevant facility. Fill out the online form, upload required docs (e.g. AGSMEIS: training cert, project plan), and submit. You can also visit an NMFB branch for guidance. If approved, NMFB will notify you and arrange disbursement.
     
   • BOA Loans: Visit any BOA branch (or the BOA website) to collect an application form. Submit the form with attachments (IDs, project report, BVN, etc.) to the loan officer. BOA may invite you for a project appraisal.
     
   • NYIF: Follow your state youth office’s instructions. Typically you will undergo some mentorship or workshop, then apply on the NMFB/NYIF portal with all docs (see NYIF guide).
     
5. Follow Up and Stay Prepared. After submission, keep communication lines open with the lender. Be ready to clarify your business plan, adjust budgets, or provide extra info. If declined, ask why and remedy any shortcomings before reapplying or trying another scheme.
   

Tips on Eligibility, Documentation & Readiness

• Valid BVN/Account: Almost every program requires a bank account with BVN. Get yours certified and ensure all names match. (For ABP, “farmer’s requirement” explicitly includes a BVN-linked account.)
  
• Membership/Group: ABP won’t fund lone farmers – join a cooperative or farmers’ group under an approved anchor. Similarly, some youth loans encourage joint applications with co-applicants or cooperatives to spread risk.
  
• Training/Certification: Do the necessary training. For AGSMEIS/NYIF, proof of completing entrepreneurship courses is mandatory. Use the downtime before applying to attend these programs – it not only fulfills requirements but also strengthens your plan.
  
• No Outstanding Gov’t Loans: Check that you have no unpaid loans under any CBN schemes (e.g. previous AGSMEIS, TCF, etc.) – unpaid debts can bar you from new support.
  
• Business Plan: Prepare a clear project proposal or business plan. Many programs (especially BOA and NMFB loans) require a feasibility study/business plan. Even if not required, a solid plan makes approval more likely. Detail your production plan, budget, expected yields/sales, and repayment strategy.
  
• Collateral/Guarantors: Know your collateral. Microcredit may need minimal security (group cross-guarantee, but bigger loans often need land titles, GSI or guarantors. Line these up in advance.
  
• Follow the Rules: Stick to the guidelines – e.g. don’t try to borrow from multiple CBN schemes at once, and use funds only for the intended agricultural purpose. Misusing loans can make you ineligible for future support.
  

Why These Loans Matter for Agribusiness Youth

Accessing formal agricultural finance can be transformative for young agripreneurs and SMEs. With the right loan, a startup can scale quickly: invest in equipment, buy quality inputs in bulk, and improve processing/marketing. This drives productivity and profitability. As one study noted, expanding credit to poor farmers has significant effects on their income. Moreover, structured lending (with training and monitoring) builds financial discipline and credit history for youth businesses, opening doors to future growth.

By tapping into these programs, young agritech founders and rural SMEs can link their innovations (like climate-smart farming or digital marketplaces) with capital. The CBN and BOA schemes exist to uplift the next generation of farmers and agri-entrepreneurs. With careful preparation – the right paperwork, a solid business plan, and understanding each scheme’s rules – Nigerian youths can leverage these loans to build sustainable, high-growth agribusinesses.