NATIONAL AGRICULTURAL DEVELOPMENT FUNDS ACT

What Is This Policy?

The National Agricultural Development Fund (NADF) Act 2023 establishes a dedicated, long-term public fund to finance agricultural development across Nigeria. The Fund pools federal and state government contributions, development bank deposits, and donor resources to provide affordable credit, grants, and guarantees to farmers, agribusinesses, and agricultural infrastructure investors.

Who Does It Target?

Smallholder farmers who lack collateral to access commercial bank credit Agro-processors, food manufacturers, and value chain investors seeking long-tenor financing State governments funding irrigation, rural road, and post-harvest infrastructure projects Cooperatives, farmer groups, and agricultural commodity associations

What Does It Aim to Achieve?

Provide a sustainable, countercyclical funding stream for agricultural development that is not dependent on annual budget appropriations Reduce farmers' cost of credit by offering concessional interest rates below the commercial bank cost of funds Finance the infrastructure gaps in storage, irrigation, rural roads, and processing that constrain agricultural productivity Complement the Agricultural Credit Guarantee Scheme Fund (ACGSF) by providing direct lending and matching grant instruments

Key Features

Multi-Source Capitalisation: The Fund receives contributions from the Federal Government appropriation, state government allocations, Bank of Agriculture equity, and development partner grants Concessional Lending: NADF disburses credit at below-market interest rates through the Bank of Agriculture and licensed microfinance banks to qualifying farmers and agribusinesses Grant Window: A dedicated grant window finances non-revenue agricultural infrastructure, climate-smart adoption, and women and youth agri-enterprise start-ups Guarantee Facility: The Fund provides partial credit guarantees to commercial banks to crowd in private lending to agricultural clients who lack traditional collateral State Matching Mechanism: States that contribute to the Fund receive proportional access to credit lines for state-level agricultural development projects Independent Governance: The Fund is managed by an independent board chaired by the Central Bank Governor with representation from FMAFS, BOA, and the private sector

Current Status

Rollout Stage: Active; Fund establishment completed 2024; initial capitalisation underway Implementing Body: NADF Board; Bank of Agriculture (BOA) as the primary disbursement channel Capitalisation Target: Initial capitalisation target of N200 billion in the first three years Funding: FGN appropriation, state government contributions, BOA equity transfer, and donor pledges from World Bank and IFAD

How to Access

Farmers: Apply for NADF credit through the Bank of Agriculture at boa.ng or nearest BOA state branch, using NIN and farmland documentation State Governments: Contribute to the NADF matching fund to access state-level credit lines for agricultural infrastructure financing Agribusinesses: Apply for NADF term loans for post-harvest infrastructure, processing equipment, and cold chain investment through BOA: boa.ng Contact: FMAFS: fmafs.gov.ng | BOA: boa.ng | BOA Headquarters, Wuse Zone 4, Abuja

Official Resources

Website: fmafs.gov.ng | boa.ng Contact: Bank of Agriculture, 127 Cadastral Zone C06, Near CBN, Garki, Abuja | [email protected] Policy Summary | Source: FMAFS, FEC Press Release 2023, Punch Nigeria, Businessday, Bank of Agriculture | February 2026

Legal Framework

The National Agricultural Development Fund Act establishes the Fund under statute. It operates under the Central Bank of Nigeria Act 2007, the Banks and Other Financial Institutions Act 2020, and the Agricultural Credit Guarantee Scheme Fund Act. It aligns with the Federal Ministry of Agriculture and Food Security mandate, the Malabo Declaration on agricultural financing (10% of national budget), and the ECOWAS Agricultural Policy (ECOWAP) on rural development financing.