The Federal Government has announced plans to inject N1.5tn into the Bank of Agriculture as part of efforts to drive wealth creation through agriculture and boost food security.
Additionally, N1tn has been earmarked for the solid minerals sector to enhance production and productivity.
The Minister of Budget and Economic Planning, Abubakar Bagudu, disclosed this on Monday during the KPMG Budget 2025 on Arise News, where he outlined the government’s strategy to stimulate key sectors of the economy.
Bagudu emphasised the critical role of agriculture in reducing poverty, curbing inflation, and driving inclusive economic growth. He noted that the government was committed to modernising agricultural production and ensuring that farmers had the necessary financial support.
“This gives further impetus to do more in agriculture so that we maintain the trajectory of modernising our agricultural production—from the artisanal level to the livestock sector to the fisheries sector—so that we can scale higher. When our people engaged in agriculture become wealthier and richer, it drives overall wealth creation and economic growth,” he said.
The minister explained that the government had set aside N1.5tn in the budget to recapitalise the Bank of Agriculture, ensuring access to long-term financing for farmers and agribusinesses.
“We have set aside N1.5tn in the budget to capitalise the Bank of Agriculture, and it is anticipated that with this recapitalisation, the challenges we currently see in funding agriculture will be addressed,” Bagudu stated.
On the solid minerals sector, Bagudu revealed that N1tn had been allocated in the 2025 budget to support the industry, emphasising the need for greater financial backing to drive sectoral growth.
“N1tn has been provided additionally in the 2025 budget to support the solid mineral sector. While we have done a lot in terms of institutional alignment, we have created a solid minerals ministry, but some of the risk capital required to propel the sector to greater production and productivity has not been provided. With this N1tn, we will see a faster transition of activity in the solid minerals sector,” he said.
Bagudu noted that these investments align with President Bola Tinubu’s economic agenda to diversify the economy, reduce dependence on oil revenue, and support sectors with high growth potential.
He added that the planned funding initiatives would complement other economic policies, including reforms in petroleum subsidy removal and foreign exchange market liberalisation, which are aimed at creating a more sustainable fiscal environment.
Bagudu also reiterated the government’s commitment to responsible borrowing and fiscal discipline, assuring that the funds for these initiatives would be sourced without undermining Nigeria’s debt sustainability.
The PUNCH previously reported that the Federal Government has successfully secured a $134m loan facility from the African Development Bank aimed at boosting agricultural production, particularly in the seeds and grains sector.
