The Federal Government has allocated N132bn to support farmers and farming activities in the 2025 budget.
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.
