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How To Apply For Agricultural Loans in Nigeria



How To Apply For Agricultural Loans in Nigeria


Applying for agricultural loans in Nigeria has a lot to do with patience and consistency. It is a thing that everyone who has ever applied for, and gotten can attest to.

This post will identify some of the important loans and guide you through on how to apply for agricultural loans in Nigeria.

Like every other business, the availability of labour and resources defined agricultural productivity.

Agriculture in Africa is regarded as the single most important economic activity which employs about two-thirds of the continent’s working population.


How To Apply For Agricultural Loans In Nigeria

Agriculture accounts for about 14 per cent of the Gross Domestic Product in sub-Saharan Africa. To sustain the viability of agribusiness in Africa, and especially Nigeria, there is a need for loans and grants.

According to the World Bank, The development and commercialization of agriculture require financial services that can support larger agriculture investments and agriculture-related infrastructure that require long-term funding given that currently, transportation and logistics costs are too high, especially for landlocked countries.

While some loans and grants are time-bound, others are not. This means that while some doors are being shut, others make themselves available. Though some of the processes involved in obtaining loans and grants prove to be rigorous, however, the return at the end of the day is always worth it. For every farmer, it is the harvest that determines this success.

Agricultural Small and Medium Enterprise Investment Scheme

The Agric, Small and Medium Enterprise Scheme is an initiative of the Bankers’ Committee established in a bid to support and complement the federal government’s effort at promoting Agri-businesses/SMEs as a vehicle for sustainable economic development and employment generation.


With the CBN AGSMEIS, an applicant can access up to N10m at 5 per cent per year without collateral with a 7 years tenor and 18 months moratorium. The AGMEIS loan comes in two phases. The first phase involves applicants who have indicated an interest, this allows them the opportunity to visit NISRAL Microfinance Bank’s webpage select the Ministry of Agriculture as Entrepreneur Development Institute also known as EDI, then visit the

Ministry of Agriculture/Agribusiness department for further details or simply send an email to [email protected]

After that, the applicant is expected to attend a one-week compulsory training at the Lagos State Ministry of Agric EDI Centre/Oko-Oba Agege to obtain a certificate for completion of training.

Also Read 6 Loan Apps for Urgent 30k Naira Loans in Nigeria 2023


Phase two involves those that have been successfully trained by the EDI in Lagos State. If they are still interested in obtaining the loan, they will proceed to apply for a loan via the NISRAL MFB’s portal and upload the obtained certificate of completion. After that has been successfully carried out, the applications filled by applicants would then be forwarded to the Central Bank of Nigeria for processing.

Once the CBN processes the applications, applicants will be called for an interview regarding their business. The qualified ones will be contacted and given the loan.

Though the opportunity is open to all, however, some requirements must be met. These requirements are to be met during the application or before the final approval of the CBN loan application and the final disbursement of funds to applicants. The requirements are that the business must be registered with the Corporate Affairs Commission, must be certified by an EDI, must possess a Biometric Verification Number, applicant’s passport photo and a guarantor and a valid ID.

The Bank of Industry Agro-processing loan

This is another type of loan that is currently available to Nigerian farmers whose business primarily is on Agro-processing. It covers areas such as fisheries and forestry-based sectors. The loan is funded by the Bank of Industry and has got some requirements that must be met.


The company must be registered; and during the application process, applicants must provide the registration number or the business name for the enterprise. The BOI does not disburse loans to the borrower in cash but to the vendors and suppliers of the agricultural equipment that the loan application is for. The BOI’s Agro-processing loan starts from N5m. Should a business be considered for a loan, collateral shall be required.

Some assets would be pledged to secure the loan. The Bank accepts other forms of security subject to adequate coverage of the loan provided to the business. Some of the securities that are acceptable by the bank include a legal mortgage on a landed property, which is duly registered with a Certificate of Occupancy, debenture on assets of the company, bank guarantee, and external guarantors with a notarised statement of net worth for loans below N10m. Other documents will be communicated as the applicant commences the application.




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