Tinubu Commends BOI’s N636bn Loans as Agriculture Takes Largest Share
- The Bank of Industry disbursed N636 billion in 2025, with agribusiness receiving the largest allocation
- President Tinubu said the funding strengthened productive capacity and reflected economic reform progress
- The CBN restructured the Agricultural Credit Guarantee Scheme to improve access to agricultural financing
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
President Bola Tinubu has commended the Bank of Industry for disbursing N636 billion in loans to Nigerians in 2025.
In a statement, President Tinubu commended the bank’s performance, describing the N636 billion disbursement as a boost to productive capacity across sectors.
Source: UGC
According to the president, the financing supported agro-processing expansion, strengthened manufacturing output, improved infrastructure delivery, and enabled thousands of enterprises to grow. He added that expanding access to long-term capital during a period of global credit tightening reflects the impact of ongoing economic reforms.
Agribusiness leads sectoral allocations
Agribusiness received the largest share of the loan disbursement, underscoring renewed financing support for Nigeria’s agriculture sector.
Data from the bank show that agribusiness attracted N202 billion, accounting for about 32% of the total disbursed funds.
The record allocation represents a major milestone for the country’s foremost development finance institution as it seeks to drive food security and industrial expansion despite prevailing macroeconomic pressures.
Infrastructure projects received N100 billion, while manufacturing accessed N79 billion. The extractive industries secured N77 billion, and services obtained N55 billion.
The 2025 performance came amid global financing constraints that widened funding gaps and increased pressure on development finance institutions. Demand for BOI facilities rose during the period, largely due to the institution’s relatively lower interest rates and longer repayment tenures.
CBN shifts focus to agricultural credit
The renewed emphasis on agricultural financing aligns with policy adjustments at the Central Bank of Nigeria (CBN), Business Day reported.
In 2024, the apex bank restructured its Agricultural Credit Guarantee Scheme Fund (ACGSF) by inaugurating a new board, following the discontinuation of the Anchor Borrowers’ Programme due to repayment challenges.
Speaking at the inauguration in Abuja, CBN Governor Olayemi Cardoso described the ACGSF as a longstanding development finance mechanism that must adapt to the financing needs of modern agriculture.
Cardoso clarified that strengthening the scheme does not signal a return to sector-specific interventions but reflects the CBN’s statutory mandate, which recognises the ACGSF as a core instrument for supporting agriculture.
CBN pledges to make agriculture inclusive
He stated that the goal is to make agricultural credit more inclusive, ensuring that limited collateral or remote location no longer prevents farmers from accessing financing.
According to him, agriculture contributes over one-fifth of Nigeria’s gross domestic product and employs nearly two-thirds of the workforce, yet it receives less than 5% of total bank lending.
Source: Getty Images
Signs of sector recovery
Recent data indicate a modest rebound in the sector. According to the National Bureau of Statistics (NBS), agriculture grew by 2.82% in the second quarter of 2025, up from 0.07% in the first quarter and slightly higher than the 2.6% recorded in the same period of 2024.
Further evidence of expansion came from the CBN’s Purchasing Managers’ Index (PMI) for January, which showed the agriculture index at 54.2 points — marking the eighteenth consecutive month of growth.
Sub-indices for farming activities, new orders, employment, and raw materials inventory stood at 55.8, 54.1, 52.8, and 54.3 points, respectively, indicating sustained improvement across the value chain.
The CBN noted that all five agriculture subsectors expanded during the month, with livestock recording the strongest growth.
FG opens portal for Nigerians to apply for FarmerMoni
The Federal Government of Nigeria is providing interest-free loans to 22,000 eligible farmers for improved agricultural productivity
Farmers can secure up to N300,000 without collateral through FarmerMoni, which promotes economic stability in rural areas of the country
The Renewed Hope GEEP 3.0 aimed to enhance food security and reduce poverty through financial inclusion and support for agriculture.
Source: Legit.ng
