Nigeria, IFAD sign $158 million finance pact to boost agricultural productivity

The Nigerian government has signed a financing agreement of $158 million for the Value Chain Programme in Northern Nigeria (VCN) as part of ongoing efforts to revamp agricultural activities to boost food security in the country.

This was disclosed in a statement issued Wednesday by the senior special assistant to the president on media relations (office of the vice president), Stanley Nkwocha, in Abuja.

“With the signing of the agreement, the implementation of the $158.15 million VCN project begins immediately to support agriculture value chain development and value addition for farmers in nine states of the northern part of the country,” the statement said.

According to the statement by Mr Nkwocha, the initiative, signed at the Presidential Villa, is co-funded by the International Fund for Agricultural Development (IFAD), the French Development Agency, and the Nigerian government.

The initiative is an eight-year programme conceived following Vice President Kashim Shettima’s visit to Rome on 24 July, 2023. Mr Shettima requested that IFAD should scale up its portfolio in Nigeria and mobilise additional partners and donors to support the agri-food transformation and food security of the Renewed Hope Agenda. This move was eventually validated on 21 March last year.

Significance

On Wednesday, the Nigerian government said the move is expected to sustainably reduce poverty, enhance nutrition and improve the resilience of rural and most vulnerable populations across nine northern states, which include Borno, Bauchi, Kano, Katsina, Kebbi, Jigawa, Sokoko, Yobe and Zamfara.

In his remarks during the ceremony, Mr Shettima described the VCN initiative as a product of “critical thinking” about the economic reality of the northern region.

He said the development is a fulfils the promise made by the administration of President Bola Tinubu to reduce poverty in Nigeria, restore dignity to the nation’s farmers, and ensure food security.

“It is a declaration of faith in the North—not as a region of deficits, but as a place of abundance. It also invites us to play our part in fulfilling the promise to reduce poverty, nourish our people, and restore dignity to farming families across Bauchi, Borno, Jigawa, Katsina, Kebbi, Sokoto, Kano, Yobe, and Zamfara,” the statement quoted Mr Shettima as saying.

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He added that “What has brought us together today is an investment of $158.15 million, co-financed by the International Fund for Agricultural Development (IFAD), the Agence Française de Développement (AFD), the Federal Government of Nigeria, and other stakeholders.”

This, he said, reflects Mr Tinubu’s commitment to prioritising what matters most—people, productivity, and prosperity,” VP Shettima declared.

Mr Shettima recalled that the administration recently commenced foundation laying for the construction of Special Agro-Industrial Processing Zones (SAPZs) across Nigeria, and that the VCN programme will feed into the SAPZs, serving as “a steady pipeline of raw materials and ensuring our processors no longer grope for quality inputs.

“This synergy will shift us from exporting raw produce to exporting value-added goods—creating jobs, wealth, and industrial stability,” he added.

Mr Shettima observed that “the recent global trade disruptions and the resurgence of protectionism are loud warnings to Nigeria to begin to grow what its people eat and produce what they trade.

“The agricultural tariffs and retaliatory postures of global powers like the U.S. and China have rattled commodity chains. For a nation that has long relied on food imports, the message is clear: we must grow what we eat and produce what we trade,” Mr Shettima said.

He noted that the VCN initiative will help address lingering concern around grain supply by making wheat, maize, and animal feed viable for commercial cultivation, and by investing in irrigation, processing, and storage facilities in states like Kebbi and Jigawa.

“We are not just securing food—we are laying the groundwork for agricultural exports that can rival our oil,” he said.

He explained that what makes the programme exceptional is that it targets the underserved: women, youth, persons with disabilities, and returnees.

Also, the Nigerian leader said it recognises that peace and prosperity are twin goals—and that in communities scarred by conflict, agriculture is not just a livelihood; it is rehabilitation.

Mr Shettima assured that the government will deploy digital tools to track every step, from farmer registration to market access, from input distribution to yield analysis.

Additionally, the vice president assured that “in regions where migration and insecurity are fuelled by joblessness, the VCN provides vehicles for enterprise, income, and dignity.”

Comments

Meanwhile, a former Senate President, Ahmed Lawan, who spoke on behalf of the National Assembly, commended IFAD, the federal government and other partners for the conception of the programme.

Mr Lawan described it as a well-thought-out initiative that will transform the lives and livelihoods of many in the targeted states and beyond.

He pledged the commitment and support of the National Assembly in the implementation of the various interventions contained in the programme.

On his part, Nigeria’s Minister of Agriculture and Food Security, Abubakar Kyari, said the signing of the financing agreement represents a significant milestone in the efforts to transform the agricultural landscape in Nigeria.

He noted that the participation of the nine states and the presence of other critical stakeholders underscore the commitment of the sub-nationals and the federal government in fostering inclusivity in agricultural development and economic empowerment.

The minister expressed confidence that the VCN will deliver programmes and projects that will improve agricultural productivity and the overall well-being of small-holder farmers, farmer groups, and women across the region.

In her remarks, the Country Director of IFAD, Dede Ekoue, reiterated that the programme is a $158.15 million project designed to transform agribusiness in nine northern states of Borno, Yobe, Jigawa, Bauchi, Kano, Katsina, Kebbi, Sokoto and Zamfara, over a period of eight years, targeting about 3.1 million household members.

She said the interventions targeted under the programme will focus on climate smart agriculture, leveraging innovative technologies; improving post-harvest handling and value chain addition; increase access to business development services for youths and women agri-preneurs; boost access to financial services and scale up access to digital solutions for productivity, among others.

The IFAD official added that expected results from the interventions include, the creation of over 30,000 jobs and entrepreneurial opportunities for youths, women and vulnerable groups and the construction of over 229km of roads across the region to enhance access to market, among others.

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Mrs Ekoue applauded the commitment and vision of the President and Vice President, and emphasised the need for all stakeholders in the project to work in unison for the actualisation of set objectives and in the overall interest of the national economy.

The statement noted that the high point of the occasion was the signing of the agreement for the Joint Roadmap for Accelerated Start-up between the federal government and IFAD.

In separate remarks, the governors of Borno, Babagana Zulum, Jigawa; Umar Namadi, and Katsina, Dikko Radda, applauded the move by the federal government in the implementation of the VCN programme and other schemes across northern Nigeria.

They pledged their commitment and support in the actualisation of the objectives of the various components of the programme and urged the implementers to review the design and timeline for implementation to enable states to maximise the benefits therein.