Business & Economy

Nigeria Secures $634M to Boost Food Security and Rural Development

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The Nigerian government, through the Ministry of Agriculture and Food Security, has secured over $600 million in foreign loans in 2024 to enhance food security and promote rural development across the country.

A key development in the initiative is the $134 million loan obtained from the African Development Bank, aimed at boosting seed and grain production nationwide. This funding is part of the government’s larger strategy to increase agricultural output and strengthen the sector.

Additionally, the government has secured a significant $500 million loan from the World Bank through the Rural Access and Agricultural Marketing Project (RAAMP). This brings the total funds available for agricultural development to $634 million.

RAAMP is designed to address rural infrastructure challenges by improving access to agricultural hubs, schools, and hospitals, while fostering socio-economic growth in rural areas. The project will focus on enhancing roads and trading infrastructure to facilitate food production, with a special emphasis on increasing women’s participation in the transport sector.

However, despite these efforts, Nigerian farmers have expressed concerns over the selective nature of the government’s agricultural interventions. Critics argue that the initiatives mainly benefit well-connected individuals, leaving out smallholder farmers, who form the backbone of the country’s agricultural sector.

Kaduna-based farmer La’ah Dauda noted that the initiatives are “highly selective” and criticized the limited outreach of the government’s awareness programs, particularly in less favored areas.

The next phase of the RAAMP initiative will involve a $500 million investment from the World Bank, supported by $100 million in counterpart funding from both federal and state governments.

Mike Ojo

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