Nigeria agricultural funding rises to N3.8 trillion amid production gaps

Nigeria’s agricultural sector has seen a significant rise in financing, with bank credit increasing from approximately N1.46 trillion at the end of 2021 to N3.81 trillion by January 2026. A report by Regius Capital Limited noted that agrifood capital-market issuances reached roughly N1.73 trillion between 2020 and the first half of 2026. However, the report raised concerns that this surge in funding has not yet translated into a corresponding increase in productive capacity or food production.

Stakeholders at a National Stakeholders Consultative Meeting have called for improved funding, timely budget releases, and stronger accountability to bolster food security. Participants noted that aggregate public expenditure on agriculture across federal and state levels was estimated at only 4.58 percent in 2026, falling short of the 10 percent target set under the Comprehensive Africa Agriculture Development Programme (CAADP).

Further challenges include weak budget implementation; at the state level, actual capital budget implementation averaged about 50 percent between 2023 and 2025. Experts cautioned that rising nominal values in agricultural output may be influenced by inflation and commodity prices rather than actual physical production growth.