The Federal Government has introduced a new collateral-free loan scheme aimed at supporting smallholder farmers across the country.
The initiative was announced via the official website of the National Orientation Agency (NOA).
According to official sources, the initiative is designed to provide easier access to funding for farmers who often struggle to obtain credit from traditional financial institutions, thereby improving agricultural productivity, strengthening national food security, and increasing the income of rural farmers.
Through the scheme, eligible farmers will be able to access funds without providing physical collateral, a major barrier that has prevented many small-scale farmers from securing loans in the past.
The NOA explained that the funds will help farmers purchase essential agricultural inputs such as improved seeds, fertilisers, pesticides, and basic farming equipment, adding that these resources are expected to enable farmers to increase crop yields and expand their farming activities.
To qualify for the programme, the agency disclosed that applicants must meet certain eligibility requirements, including being a Nigerian citizen aged 18 years and above, and must be actively engaged in farming activities within their communities. Applicants are also required to possess a valid bank account and have a National Identity Management Commission-issued National Identification Number (NIN).
In addition, the notice instructed that farmers seeking to benefit from the loan scheme must be members of recognised farming cooperatives within their local government areas, adding that this measure is important for the promotion of accountability and easy distribution of funds.
