Kwara partners BOA to launch collateral-free loan program for farmers
In a significant move to empower farmers and enhance food production across the state, the Kwara State Government has established a strategic partnership with the Bank of Agriculture (BOA) to provide collateral-free loans aimed at farmers, agribusinesses, and enterprises led by women and youth.
This initiative was announced during a working visit by Commissioner for Agriculture and Rural Development, Dr. Afees Abolore Alabi, to the Ilorin Branch of the BOA, where he met with Branch Manager Alhaji Tomori Mahruf to formalize the partnership.
As the 2025 planting season approaches, this loan scheme is designed to remove financial obstacles and encourage inclusive participation in the agricultural value chain.
The loan program consists of two main categories:
- Micro Loans (₦250,000 and below): Targeted at smallholder farmers, backyard growers, food processors, and SMEs in the agricultural sector, these loans require no collateral and feature simplified documentation, making them ideal for quick-impact agricultural activities.
-Macro Loans (up to ₦1 million): This category is meant for larger-scale operations and includes three specific packages:
- YARN (Youth Agricultural Revolution in Nigeria): Designed for young entrepreneurs engaged in mechanized farming, agri-tech, and value chain businesses.
- GEM (Grow and Earn More): Aimed at farmers interested in expanding their production capabilities.
- WAE (Women Agricultural Enterprise): Focused on women involved in all facets of agriculture, from production to processing and distribution.
Additionally, civil servants will be able to access these loans through salary-backed arrangements.
During the visit, Dr. Alabi highlighted the administration’s commitment to strengthening food systems and creating opportunities for various groups within the state. He remarked, “This is a bold step to democratize access to credit in agriculture, enabling farmers, women, and young entrepreneurs to scale their ventures and make meaningful contributions to food security in Kwara.”
In response, Branch Manager Alhaji Tomori Mahruf expressed the bank’s commitment to supporting this initiative. “We are excited about this collaboration and are fully dedicated to helping farmers in Kwara access credit with ease. Our loan officers are available to provide guidance and ensure a smooth application process,” he stated.
The Kwara State Government continues to prioritize inclusive and gender-responsive agricultural policies, aimed at fostering a robust rural economy, alleviating poverty, and promoting self-reliance through agribusiness. Interested farmers, agripreneurs, and civil servants are encouraged to reach out to the Kwara State Ministry of Agriculture and Rural Development Help Desk for more information and application support.
