The bank of Agriculture (BOA) and the United Nations Development Programme (UNDP) have launched a strategic partnership aimed at transforming Nigeria’s agricultural financing landscape and positioning the sector to attract large-scale blended and climate finance.
Formalised through a Memorandum of Understanding (MoU), the collaboration aligns BOA’s reform agenda with UNDP’s Integrated Smart States Programme (ISSP) while supporting the Federal Government’s One Million Hectare Tree Crop Initiative. The flagship programme focuses on expanding the cultivation of high-value crops, including cashew, oil palm, coffee, and rubber, to boost non-oil exports, create rural employment, strengthen food security, and increase climate resilience.
The partnership comes as Nigeria seeks to bridge its agricultural financing gap, improve access to credit for farmers, and mobilise greater private-sector investment into one of the country’s most strategic sectors.
Announcing the initiative on Friday, BOA Managing Director Ayodeji Sotinrin said the bank is implementing a technology-driven transformation to improve lending efficiency, strengthen financial inclusion, and ensure agricultural credit reaches deserving beneficiaries.
“Our vision is to deploy capital efficiently and reposition BOA as a catalyst for food security and rural prosperity,” Sotinrin said. “We are bringing everyone into the financial net, especially young farmers in our hinterlands, to build a resilient food system.”
Central to the reform programme is the introduction of a digital loan verification framework that combines Bank Verification Number (BVN) authentication, Know Your Customer (KYC) compliance, and GPS-based farm mapping. The system is designed to reduce fraud, improve transparency, and ensure subsidised agricultural loans are channelled to genuine farmers.
As part of its digital transformation, BOA is also modernising its network of 110 branches through digital farmer platforms, agency banking services, and solar-powered infrastructure. UNDP will provide technical expertise and information technology support to accelerate the rollout of these initiatives.
The National President of the All Farmers Association of Nigeria (AFAN), Muhammad Magaji, welcomed the enhanced verification measures, describing them as an important safeguard against the diversion of agricultural loans to politically connected individuals at the expense of genuine smallholder farmers.
Beyond expanding access to finance, the partnership reflects a broader shift towards technology-enabled agricultural financing that prioritises transparency, productivity, and climate resilience. By strengthening governance, digitising lending processes, and improving risk management, BOA aims to attract institutional and private-sector capital while expanding affordable credit to farmers across the country.
If successfully implemented, the reforms could reposition the Bank of Agriculture as a modern development finance institution capable of catalysing investment, accelerating agricultural productivity, reducing Nigeria’s dependence on food imports, and supporting long-term rural economic growth.
