The Bank of Agriculture (BOA) said it has begun a framework to tackle Nigeria’s agricultural market and protect smallholder farmers from persistent price instability.

It said the reforms was part of the agricultural agenda of President Bola Tinubu being implemented by the bank.

Managing Director of BOA, Ayodeji Sotinrin, who made this known during a television interview, said the interventions was designed to improve farmer income, expand financial inclusion and boost food security.

Sotinrin stated that the wide-ranging initiatives reflected the Federal Government’s commitment to supporting farmers.

He said the reforms aligned with the President’s drive to strengthen food systems, scale production and ensure farmers enjoy the rewards of their efforts.

Sotinrin stated that part of reform was the introduction of a Guaranteed Minimum Price (GMP) mechanism to address the long-standing gap between production costs and farm-gate prices.

He said: Under the arrangement, the government will set a price floor for staple crops such as maize, rice, soybeans and cassava.

“The bank will purchase excess produce directly from farmers to prevent post-harvest losses and store the commodities in the nation’s 33 silos for future price stabilisation.

“There is a shift from direct micro-credit to a digital ecosystem driven by farmer aggregation companies.”

Sotinrin said the bank deployed 2,000 high-durability tractors sourced from Belarus to service providers who must demonstrate the capacity to mechanise at least 600 hectares each.

He said the launch of a ginger revival programme would replace traditional replanting methods with tissue culture technology, with the goal of expanding the ginger industry from a $300 million sector to a $3 billion export powerhouse by 2028.

“The Federal Government approved a historic ₦1.5 trillion recapitalisation of the bank to transform it into a development finance institution capable of providing affordable credit, capacity development and innovation support for farmers, particularly youth and women-led agribusinesses.

“Through strategic cooperation with Brazil, Nigeria is set to deploy modern farming equipment, establish nationwide training programmes and develop agricultural service centres to boost output.

“The collaboration is expected to attract investment, expand modern farming practices and significantly increase food production as part of efforts to reposition agriculture as a major pillar of economic growth and food sufficiency.”