Introduction
Agriculture has always been the backbone of Nigeria’s economy. Even before oil became the country’s main source of revenue, farming provided food, jobs, and raw materials for industries. Today, despite the discovery of petroleum, agriculture still plays a major role in reducing poverty, ensuring food security, and promoting export diversification.
However, one of the biggest challenges farmers and agribusiness owners face in Nigeria is access to affordable financing. While commercial banks often shy away from lending to agriculture due to its perceived risks, the Bank of Agriculture (BOA) was established to close this gap.
BOA loans are designed to empower smallholder farmers, agribusiness entrepreneurs, cooperatives, and even large-scale investors who want to venture into farming. From poultry farming to rice processing, from fish farming to cassava production, the BOA provides specialized loan products that make it easier to access credit at lower interest rates compared to commercial banks.
This guide provides a comprehensive look at BOA loans in 2025/2026—covering the loan types, eligibility requirements, application steps, repayment terms, challenges, and benefits. By the end of this article, you’ll have a clear roadmap for securing agricultural financing in Nigeria through the Bank of Agriculture.
Overview of the Bank of Agriculture (BOA)
The Bank of Agriculture (BOA) is Nigeria’s premier agricultural development finance institution. It was established in 1972 (originally as the Nigerian Agricultural Bank, NAB) and later restructured into BOA. The bank is fully owned by the federal government, with the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance as its major stakeholders.
The BOA operates under the mandate of supporting agricultural productivity by:
- Providing affordable credit facilities to farmers and agribusinesses
- Promoting rural development through financial inclusion
- Supporting value chain development in agriculture (production, processing, and marketing)
- Encouraging youth and women participation in agribusiness
Unlike commercial banks that prioritize profit, BOA’s main mission is development-focused lending. This means its products are structured to empower farmers, create jobs, and stimulate economic growth rather than chase quick profits.
Loan Products and Services Offered by BOA
1. Micro Loans
- Target: Smallholder farmers and petty traders in rural areas
- Loan Amount: ₦50,000 to ₦250,000
- Interest Rate: Around 12% per annum (subject to change)
- Repayment Tenure: 1–2 years
- Example: A vegetable farmer in Jos can access ₦100,000 to expand her tomato farm, buy improved seeds, and invest in irrigation.
2. SME Loans
- Target: Medium-sized agribusinesses, processors, and marketers
- Loan Amount: ₦250,000 to ₦5,000,000
- Interest Rate: Between 12% and 14%
- Repayment Tenure: Up to 5 years
- Example: A poultry farmer in Ibadan who wants to set up a hatchery can obtain ₦3 million to purchase equipment and feedstock.
3. Large-Scale Agricultural Loans
- Target: Commercial farmers and large investors
- Loan Amount: ₦5 million and above
- Repayment Tenure: Up to 7 years with grace periods for repayment
- Example: A rice miller in Kebbi can borrow ₦20 million to acquire milling machines and boost rice processing for both domestic and export markets.
4. Youth Agricultural Revolution in Nigeria (YARN) Loan
- Target: Nigerian youths (18–35 years) venturing into farming
- Loan Amount: Up to ₦1 million per individual
- Repayment Tenure: Flexible, usually 3–5 years
- Example: A fresh graduate from UNN who wants to start catfish farming can access this loan to build ponds and purchase fingerlings.
5. Women in Agriculture (WIA) Loan
- Target: Female farmers and women-owned agribusinesses
- Loan Amount: ₦50,000 to ₦5 million depending on scale
- Example: A women’s cooperative in Kaduna can secure funding for cassava processing and packaging.
6. Export Finance Loan
- Target: Exporters of Nigerian agricultural products
- Loan Amount: ₦5 million and above depending on export capacity
- Example: A cocoa exporter in Ondo can secure financing to meet international quality standards and expand shipments abroad.
Eligibility Criteria for BOA Loans
While BOA loans are open to all Nigerian citizens interested in agriculture, applicants must meet certain requirements. These include:
- Must be at least 18 years old
- Must be a Nigerian citizen
- Prior experience in farming or a feasible business plan
- Collateral such as landed property, guarantors, or group guarantees (for cooperatives)
- Valid ID card, BVN, passport photographs, cooperative certificates (if applicable)
- BOA account opening with a minimum deposit
Step-by-Step Application Process
Step 1: Prepare Your Business Plan
A strong business plan is essential. This should include project description, costs, potential revenue, and repayment strategy.
Step 2: Gather Required Documents
ID, BVN, photographs, proof of residence, cooperative registration (if applicable).
Step 3: Visit the Nearest BOA Branch
Applications are not yet fully online. Visit any branch nationwide for forms and guidance.
Step 4: Submit Application and Business Plan
Submit completed forms with your business plan and documents.
Step 5: Assessment and Approval
BOA officers will review and assess risks before approval.
Step 6: Loan Disbursement
If approved, funds are disbursed into your BOA account for project execution.
Interest Rates, Tenure, and Repayment Plans
- Micro loans: ~12%
- SME loans: 12–14%
- Export loans: Lower than commercial bank rates
- Tenure ranges: 1 to 7 years (with grace periods for certain crops)
Challenges Applicants Face and How to Overcome Them
- Collateral Requirement: Join a cooperative to ease collateral issues.
- Delayed Processing: Ensure documents and business plan are complete.
- Limited Awareness: Farmer associations should spread awareness.
- Repayment Difficulties: Consider insurance or diversify crops.
Comparison of BOA Loan Products
| Loan Type | Target Group | Amount Range | Interest Rate | Tenure | Example Use Case |
|---|---|---|---|---|---|
| Micro Loan | Small farmers | ₦50,000 – ₦250,000 | ~12% | 1–2 yrs | Tomato farmer in Jos |
| SME Loan | Medium agribusiness | ₦250,000 – ₦5m | 12–14% | 5 yrs | Poultry hatchery in Ibadan |
| Large-Scale Loan | Commercial farms | ₦5m+ | Negotiable | 7 yrs | Rice miller in Kebbi |
| YARN Loan | Youth (18–35 yrs) | Up to ₦1m | Flexible | 3–5 yrs | Graduate fish farmer |
| WIA Loan | Women in agribusiness | ₦50,000 – ₦5m | 12% | 1–5 yrs | Women cassava coop |
| Export Loan | Exporters | ₦5m+ | Lower than banks | 3–7 yrs | Cocoa exporter in Ondo |
Benefits of BOA Loans for Entrepreneurs
- Affordable credit with lower rates
- Financial inclusion for rural farmers
- Specialized products for youth and women
- Boost to food security and job creation
Real-Life Example: How BOA Loans Can Change Lives
Amina from Kaduna used a ₦500,000 WIA loan to buy cassava processing equipment, now supplying packaged garri to supermarkets in Abuja. Chukwuemeka from Enugu accessed a ₦1 million YARN loan for fish farming, growing from 4 to 12 ponds and training other youths.
Frequently Asked Questions (FAQs)
- Can students apply? Not mainly, but graduates/youths can under YARN.
- Do I need collateral? Yes, but cooperatives can use group guarantees.
- Can individuals apply? Yes, both individuals and cooperatives can.
- How long does approval take? Usually 2–6 weeks.
- Can BOA loans be used for non-agriculture? No, strictly for agriculture/agribusiness.
Conclusion
The Bank of Agriculture remains a key financial lifeline for Nigerian farmers and entrepreneurs in 2025/2026. With affordable loans, youth and women-focused programs, and support for smallholder farmers, BOA plays a crucial role in food security and employment. If you are serious about agriculture—whether small-scale vegetable farming or large-scale rice processing—BOA loans can provide the financial foundation to succeed.
