How to get loans for farmers in Nigeria (2022)

Feb 9th, 2021

The agricultural sector of Nigeria is largely under-tapped, and one industry with huge potential. Therefore, it has been a major focus on the government for the past decade. Currently, there are several loans for farmers in Nigeria, to support their farming, and grow the economy at large. In this article, we are going to look at the loans for farmers in Nigeria that you can enjoy.


What are the available loan programs for farmers in Nigeria?

Some available loans for farmers in Nigeria are:

Farm operating loans (direct and guaranteed): 

This loan is handled by the farm service agency (FSA). It offers several operating loans for family plant and animal farmers to promote and sustain their farms. In doing so, they grow the agricultural economy of the country.

Farm storage facility loans: 

The government brought about this loan to encourage the storage and handling facilities for certain farming commodities. In reality, some of these commodities include grain sorghum, corn, oats, wheat, barley, soybeans, peanuts, lentils, chickpeas and many more.

Fisheries finance program: 

This loan is a direct government program that supplies long time financing to fish farmers. Also, such financing includes the cost of fishing vessels, fisheries facilities, and other equipment that are needed for successful fishing.

Farm ownership loans: 

This loan helps you purchase your own farmland as a farmer. More accurately, it covers the expense of purchase, construction or renovation of a ranch. Also, farm ownership loans also cater for the payment of soil and water conservation, and also protection too.

Loans for farmers in Nigeria

Asides the listed loan programs above, you can also benefit from the following loans for farmers in Nigeria:

Agricultural credit guarantee scheme fund (ACGSF): 

This loan is handled directly by the apex bank (CBN). Also, it was established by the Decree of 20 of 1997 and has been in operation since 1978. Therefore, this makes it one of the oldest agricultural schemes in the country.

Agricultural Credit Support System (ACSS): 

This is an initiative of the government programs for agric loans. Therefore, the funds are managed by the central bank of Nigeria, with a total prescribed value of N50 billion. In addition, they designed this program to reduce inflation, generate foods to be exported, and increase foreign and revenue. Also, this programme is only accessible to practising farmers and agro-allied entrepreneurs.

Commercial Agriculture Credit Scheme (CACS): 

This scheme is a result of the collaboration between the Federal Ministry of Water Resources and CBN. Furthermore, they established it in 2009 to finance the agricultural value chain of the country. This was in a bid to combat the rising inflation through increased production in the country. Also, this loan is financed by the Debt Management Office, which raised an N200 billion Bond.

Farmers’ loans from private institutions: 

Asides from governmental programs and grants, there are also private institutions that offer loans for farmers in Nigeria. These institutions allow you to take loans and pay later with a pre-agreed interest rate. However, you should note that many of them offer a far lesser amount than government loan programs and a higher interest rate.

Interesting Read: Lapo Agric Loan – Everything You Need To Know


How do I apply for loans for farmers in Nigeria?

The different types of loans have varying application procedures. Therefore, depending on your preferred loan, you should visit the official release of the institution handling the loan, to know how you can apply. There is no one single procedure for applying to loans for farmers in Nigeria. 


As a farmer, you should look to benefit from the available loans for farmers in Nigeria. These loans are especially useful for small-scale farmers looking to expand their business. In all, you should study the available loans, and ensure that it suits your need perfectly before committing.

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