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October 24, 2025
The European Union (EU) has reaffirmed its commitment to strengthening Nigeria’s agricultural sector through the introduction of a ₦320.5 billion (€190 million) credit facility. The initiative is designed to expand access to finance for farmers, agribusinesses, and agricultural value chains, in partnership with the European Investment Bank (EIB) and Nigerian financial institutions.
Announced during a high-level meeting between EIB officials and Nigeria’s Ministry of Budget and Economic Planning at the Global Gateway Forum in Brussels, the funding underscores the EU’s growing support for Nigeria’s sustainable economic development and food security agenda.
Catalysing Agricultural Growth
The new credit line will channel long-term financing through commercial banks and development finance institutions (DFIs), with a focus on key value chains such as cocoa and dairy. It will also promote climate-smart agriculture, providing farmers and agribusinesses with affordable credit and technical support to adopt resilient and environmentally responsible production systems.
Beyond the loan facility, the EU will provide technical assistance to Nigerian financial institutions, enabling them to strengthen their risk management systems and extend more credit to smallholder farmers and agricultural enterprises.
Broader Partnership Framework
The initiative builds on existing EU programmes supporting Nigeria’s economic diversification. Current interventions include:
- A €50 million financing facility for the pharmaceutical industry, aimed at boosting local production capacity.
- A €18 million grant to enhance vaccine manufacturing and regulatory capacity within Nigeria’s health sector.
These programmes form part of the EU’s Global Gateway Strategy, which seeks to mobilise sustainable investment in key sectors including energy, digital connectivity, healthcare, and agriculture.
Expected Impact
The ₦320.5 billion credit line is expected to:
- Increase lending capacity for Nigerian banks and DFIs targeting agribusinesses.
- Enhance productivity along key agricultural value chains.
- Support climate adaptation, innovation, and sustainability in rural communities.
- Attract foreign investment into Nigeria’s agriculture and agro-processing industries.
With agriculture employing over 35% of Nigeria’s workforce, the partnership is widely viewed as a strategic move to boost rural incomes, improve competitiveness, and strengthen the nation’s position within regional and global agricultural markets.
Infrastructure Dialogue is a platform that brings together the key decision makers in the industry to discuss and share information on the critical state of infrastructure advancement, investment potentials, challenges and ways to improve its framework in Nigeria.