Loans 11 min read Updated 1 May 2026

By CompareMarket Editorial Team · Researched and reviewed against provider and regulator (NAICOM · CBN · SEC) sources.

Agricultural Loans in Nigeria 2026: NIRSAL, BOI, ABP & CBN Schemes Fully Explained

Farmers and agribusinesses can access single-digit interest loans through NIRSAL, BOI, and CBN intervention schemes. Understand eligibility, how to apply, and which scheme fits your enterprise.

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Agriculture is the backbone of Nigeria's economy — employing over 35% of the workforce — yet farmers consistently cite lack of affordable credit as their biggest constraint. The good news in 2026 is that multiple government-backed schemes offer single-digit interest rates to farmers and agribusinesses who know how to access them. This guide maps every available scheme and tells you exactly how to apply.

Agricultural lending landscape in Nigeria 2026
  • CBN Anchor Borrowers' Programme: 9% p.a. — for smallholder farmers linked to commodity processors
  • NIRSAL MFB: 9% p.a. — for farmers and agricultural value chain businesses
  • BOI Agric Fund: 7–9% p.a. — for medium-scale agric enterprises with structured plans
  • ACGSF (Agricultural Credit Guarantee Scheme Fund): partial guarantee scheme enabling commercial bank agric loans
  • State government agric loan schemes: vary by state; some offer 0–5% interest to registered farmers
  • LAPO MFB and LAPO Microfinance: group agric loans for smallholder farmers from 2%/month

Agricultural Loan Programmes: Full Comparison 2026

Scheme / LenderInterest RateMax LoanTarget BorrowerCollateral Needed?How to Apply
CBN Anchor Borrowers (ABP)9% p.a.Varies by commoditySmallholder farmersNone (group/offtaker guarantee)Via Anchor company or participating bank
NIRSAL MFB9% p.a.₦50,000–₦50MFarmers + agric SMEsPartial / NIRSAL guaranteeniraslmfb.com or any branch
BOI Agric Fund7–9% p.a.₦500K–₦500MMedium-large agric businessesRequired above ₦5Mboi.ng or BOI state offices
ACGSF (via banks)15–20% p.a.Up to ₦50MAgric businesses75% guaranteed by FGN/CBNApply at commercial bank with ACGSF form
Access Bank Agric Finance18–22% p.a.₦1M–₦100MEstablished agric businessesRequiredAny Access Bank branch
Zenith Bank Agric Loan20–24% p.a.₦1M–₦50MRegistered agric businessesRequiredAny Zenith Bank branch
LAPO MFB Group Loan2–4%/month₦50,000–₦500,000Smallholder farmers (groups)Group guaranteeAny LAPO branch
FairMoney Agric (fintech)3–6%/monthUp to ₦500,000Small farmers with BVNNoneFairMoney app

The Anchor Borrowers' Programme: How It Works

The ABP is one of the most impactful agricultural financing schemes in Nigerian history. Here is how the value chain works: an Anchor company (e.g., Flour Mills of Nigeria for wheat, Dangote Rice Mills for paddy rice) enters into an agreement with the CBN. The Anchor then recruits smallholder farmers in its sourcing area. The CBN provides subsidised loans (9% p.a.) through participating banks to these farmers — disbursed as a combination of inputs (seeds, fertiliser, equipment) and cash. At harvest, farmers repay in kind or in cash, with the Anchor acting as an offtaker at a pre-agreed price.

State Government Agricultural Loan Schemes

  • Lagos State: LASAA agricultural support — check the Lagos State Ministry of Agriculture portal
  • Ogun State: Ogun State Enterprise Development Agency (OEDA) agric grants up to ₦500,000
  • Kaduna State: KADIRS agricultural intervention at 5% p.a. for registered farmers
  • Kano State: Kano State Government annual agric support — apply at KNARDA (Kano State Agricultural and Rural Development Authority)
  • Cross River: Cross River State Agric Investment Agency — access the online portal for application
  • Always check your state Ministry of Agriculture website — new programmes launch regularly
Tips for a successful agricultural loan application
  • Join a registered farmers' cooperative — cooperative membership significantly improves your approval chances
  • Get a CAC registration for your farm as a business — even a business name registration helps
  • Open a dedicated business bank account for farm proceeds and keep it active for 6+ months
  • Document your land rights — either a Certificate of Occupancy, land purchase receipt, or formal lease agreement
  • Link up with an Anchor company in your commodity area before applying for ABP — they navigate the process for you
  • Contact your state's NIRSAL office for guidance — they offer free pre-application advisory sessions

Compare all agricultural financing options available to Nigerian farmers and agribusinesses.

Explore Agricultural Loan Options →

Frequently Asked Questions

What is the cheapest agricultural loan in Nigeria?+
The cheapest agricultural loans are government-backed: the CBN's Anchor Borrowers' Programme (ABP) disburses at 9% per annum; NIRSAL Microfinance Bank lends agricultural value chain businesses from 9% p.a.; and the BOI Agric Fund provides long-term financing from 7% p.a. Commercial bank agricultural loans typically charge 18–25% p.a., while fintech agric loans can cost 3–6% per month.
How do I access a NIRSAL MFB loan in Nigeria?+
NIRSAL Microfinance Bank (niraslmfb.com) offers agricultural and SME loans through its 774 local government branch network. Apply with: a valid ID, BVN, CAC registration (for businesses), evidence of farm ownership or lease, and a basic business/farm plan. For the CBN Anchor Borrowers' Programme, apply through an Anchor company (a commodity processor or offtaker) that links you to the CBN scheme.
What is the Anchor Borrowers' Programme (ABP) in Nigeria?+
The Anchor Borrowers' Programme (ABP) is a CBN initiative that links smallholder farmers to processors/exporters (called Anchors). The Anchor provides inputs and a guaranteed market; the CBN provides subsidised credit at 9% p.a. to farmers through participating commercial banks and MFBs. Commodities covered include rice, wheat, maize, cotton, tomatoes, cassava, poultry, and more. Over 4.2 million farmers have been supported since 2015.
Can a small-scale farmer with no collateral access an agricultural loan in Nigeria?+
Yes. The Agricultural Credit Guarantee Scheme Fund (ACGSF), managed jointly by the CBN and FGN, guarantees up to 75% of an agricultural loan from a commercial bank, removing the need for full collateral. Additionally, NIRSAL (Nigeria Incentive-Based Risk Sharing System for Agricultural Lending) provides credit risk guarantees that encourage banks to lend to farmers without demanding traditional collateral.
What documents do I need for a farm loan in Nigeria?+
Minimum requirements for most agric lenders: valid government-issued ID (NIN, passport, or voter's card), BVN, evidence of farm ownership or land lease agreement, a farm plan or project description (simple one-page document is acceptable for small loans), 6 months bank statements, and passport photograph. For BOI and formal bank loans above ₦5M: CAC registration, audited accounts, and detailed business plan are typically required.

Disclaimer: CompareMarket NG is an independent comparison service. Information is verified against regulatory databases (NAICOM, CBN, FCCPC, NDIC, NERC, NCC) and updated regularly, but rates and products change frequently. Always verify current terms directly with the provider before making a financial decision. This is not financial advice.

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