The Federal Government has allocated N132bn to support farmers and farming activities in 2025.
This allocation disclosed in the 2025 Appropriation Bill forms part of a broader plan under the National Agricultural Development Fund, aimed at tackling poverty, low productivity, and limited access to resources, which have long hindered agricultural growth in Nigeria.
The NADF, established to drive agricultural development, serves as a critical vehicle for financial support and policy implementation.
Former President Muhammadu Buhari signed the Act establishing the Fund in October 2022.
The NADF Act outlines nine functions, all designed to provide essential financial support to facilitate rapid and sustainable growth across various sectors of agriculture, benefiting citizens nationwide.
One key provision of the Act, detailed in Section 8, Part II, focuses on supporting agricultural development in all aspects, including crop production, livestock, fisheries, poultry, and agroforestry, while prioritizing food security.
The Fund is also tasked with financing the implementation of agricultural policies, strengthening institutions, and providing on-lending opportunities to farmers and corporate bodies through financial institutions such as microfinance banks, cooperative societies, and farmer groups.
With a budget of over N132bn projected for 2025, the Fund aims to empower farmers by ensuring access to critical resources, such as improved seeds, fertilizers, irrigation systems, and market opportunities.
Smallholder farmers, who represent over 80 per cent of Nigeria’s agricultural workforce, have historically faced challenges including poor access to credit, limited land rights, inadequate infrastructure, and the effects of climate change.
According to the Federal Ministry of Agriculture and Food Security, these barriers have kept productivity below potential.
The N132bn allocation is expected to address these challenges through targeted interventions, including grants and subsidies for mechanized equipment, storage facilities, and modern farming tools.
These measures are anticipated to provide significant relief for smallholder farmers, paving the way for sustainable farming practices, increased crop yields, and improved access to markets, ultimately strengthening the agricultural value chain.
An associate professor at the University of Africa, Bayelsa State, Unekwuojo Onuche, expressed cautious optimism about the allocation’s potential impact. Speaking with our correspondent, he emphasised the need for effective utilization of the funds.
“If this is an improvement over the previous budget in real terms, then it is good,” Onuche said.
He underscored the importance of transparency, accountability, and timely disbursement to ensure the funds reach their intended beneficiaries.
“We pray the needed support is not diverted to ‘unintended beneficiaries,’” he cautioned, adding, “It is also important that the intervention comes on time.”
Similarly, an agricultural economist at the Federal University of Agriculture, Abeokuta, Ogun State, Joseph Deborah, commended the initiative but highlighted the risks of fund diversion.
“The initiative itself is a very good one, but the problem is not the government approving the money—it’s the step-down of this initiative and the allocation of the funds,” she noted.
Deborah stressed that smallholder farmers often receive little due to the mismanagement of funds during disbursement. She recommended direct registration and empowerment of farmers to mitigate this issue.
“It’s a very good initiative, but the problem is ensuring the funds reach the designated farmers—not individuals siphoning the money,” she warned.
