On the sidelines of the fourth Trade Fair Intra-African (IATF) 2025 ongoing since September 4, 2020, in Algiers in Algeria, a historic financing agreement was signed between the African Export-Import Bank (Afreximbank), and Bank of Agriculture (BOA) [Agricultural Bank].

Arial; mso-fareast-language:en"> The agreement was signed between the Vice President executive of Afreximbank, in charge of intra-African trade and export development, Ms. Kanayo Awani and the managing director/CEO of BOA, Mr. Ayo Sotinrin.

Arial; mso-fareast-language:en">Indeed, the BOA and Afreximbank are committed through this agreement to work together to mobilize up to 1 billion US dollars in in order to provide direct financial support to small-scale farmers and throughout the agricultural value chain, from primary production to the market, to Nigeria.

This fund will be designed to fill the gap The systemic financial system faced by small-scale farmers in Nigeria by providing access to affordable credit for inputs essential, mechanization and structured links with the market.

At the end of signature, Mr. Ayo Sotinrin emphasized that the agreement represented an intervention strategic aim to ensure Nigeria's agricultural future. To believe it “more than just a fund, it's a bold commitment to ensure the food security of our country.”

mso-bidi-font-family:arial; mso-fareast-language:en"> “The little ones farmers are an essential part of the agricultural value chain and represent important contributors to the growth of the sector agro-industrial. By partnering with the BOA to support the National Fund for smallholder farmers, Afreximbank is helping BOA to strengthen its impact on food security and economic development in Nigeria. The Fund will provide essential liquidity and alleviate the challenges faced by are facing smallholder farmers by extending crucial access to financing to a group that was previously underserved” indicated Kanayo Awani, Executive Vice President of Afreximbank, in charge of the Intra-African Trade Bank and export development.

mso-bidi-font-family:arial; mso-fareast-language:en"> The agreement of collaboration establishes a framework for exploring guarantee mechanisms by which Afreximbank would provide guarantees for loans granted by the BOA, thus reducing the risk of credit and expanding access to finance for smallholder farmers previously underserved. This partnership will also explore agreements of currency swap to allow the BOA to convert funds efficiently denominated in Afreximbank dollars in local currency for loans to farmers. By implementing this mechanism, the partnership will facilitate access to the international markets of capital, while protecting smallholder farmers from associated risks to exchange rate fluctuations.

IATF 2025 ends on Friday September 19, 2025.