In a significant move to boost the agricultural sector, the Federal Government has allocated N132 billion in the 2025 Appropriation Bill to support farmers and farming activities. This funding is part of a broader initiative under the National Agricultural Development Fund (NADF), aimed at addressing challenges such as poverty, low productivity, and limited access to resources that have historically hindered agricultural growth in Nigeria.
The Role of the National Agricultural Development Fund (NADF)
The NADF, established in October 2022 by former President Muhammadu Buhari through the signing of the NADF Act, plays a central role in facilitating agricultural development in Nigeria. The Fund’s primary objective is to provide financial support to promote sustainable agricultural growth and ensure food security.
According to Section 8, Part II of the NADF Act, the Fund focuses on a broad spectrum of agricultural activities, including crop production, livestock, fisheries, poultry, and agroforestry. It is tasked with financing the implementation of agricultural policies, strengthening institutions, and offering financial support to farmers and agricultural businesses through microfinance banks, cooperative societies, and farmer groups.
Focus on Smallholder Farmers and Key Interventions
Smallholder farmers, who account for over 80% of Nigeria’s agricultural workforce, face numerous challenges such as limited access to credit, poor infrastructure, inadequate land rights, and the impacts of climate change. These barriers have prevented many farmers from reaching their full productivity potential.
The N132 billion allocation for 2025 is designed to address these obstacles by providing grants and subsidies for key interventions, such as mechanized equipment, storage facilities, modern farming tools, irrigation systems, and improved seeds and fertilizers. By increasing access to these essential resources, the initiative aims to empower smallholder farmers, improve crop yields, and enhance market access, thereby strengthening the agricultural value chain.
Expert Opinions on the Allocation’s Impact
Experts have expressed cautious optimism about the potential impact of the funding. Unekwuojo Onuche, an associate professor at the University of Africa in Bayelsa State, highlighted the importance of transparency and accountability in ensuring the funds are effectively utilized. He emphasized that the allocation should result in real improvements over previous budgets and urged that the funds be disbursed on time to avoid mismanagement.
“If this is an improvement over the previous budget in real terms, then it is good,” Onuche said. “It is important that the intervention comes on time, and that the needed support is not diverted to ‘unintended beneficiaries.’”
Similarly, Joseph Deborah, an agricultural economist at the Federal University of Agriculture in Abeokuta, Ogun State, praised the initiative but warned about the risks of fund mismanagement. She noted that although the allocation is a positive step, the key challenge lies in ensuring that the funds reach the intended recipients – the farmers.
“The initiative itself is a very good one, but the problem is not the government approving the money—it’s the step-down of this initiative and the allocation of the funds,” Deborah explained. She recommended direct registration and empowerment of farmers to reduce the risk of funds being siphoned by individuals who are not the intended beneficiaries.
Conclusion
The N132 billion allocated to the NADF in the 2025 budget represents a major step toward improving Nigeria’s agricultural sector. If properly managed and efficiently distributed, this funding has the potential to significantly uplift smallholder farmers, enhance productivity, and strengthen the nation’s agricultural infrastructure. However, experts stress that the success of the initiative hinges on transparency, accountability, and timely disbursement to ensure that the funds are used effectively to support the farmers who need them most.
