EU Greenlights €190 Million Credit Line to Nigeria to Boost Climate-Smart Agriculture and Agri-Business Lending
Nigeria’s critical agricultural sector is set for a substantial financial injection, as the European Union (EU) has approved a €190 million (approximately N320.5 billion) credit line through the European Investment Bank (EIB). This financing is specifically designed to expand lending to farmers, agricultural Small and Medium Enterprises (SMEs), and agribusinesses across the country.
The agreement, announced following a bilateral meeting between senior EIB executives and a delegation from Nigeria’s Federal Ministry of Budget and Economic Planning at the recent Global Gateway Forum in Brussels, Belgium, aligns with the EU’s commitment to supporting Nigeria’s economic diversification and green transition.
Focus on Value Chains and Climate Resilience
The EIB’s Director for International Partnerships, Ms. Thourayya Tricki, confirmed that the facility is a key component of the EU’s continued effort to strengthen Nigeria’s agricultural value chains, with a specific focus on cocoa and dairy. The investment package aims to not only expand access to finance but also promote climate-smart agriculture and enhance the global competitiveness of Nigerian agri-food products.
The structure of the facility includes both the credit line and a technical assistance component, both of which will be channelled through relevant Nigerian commercial banks and development finance institutions (DFIs). This approach is intended to “de-risk agricultural lending” and build the necessary institutional capacity for long-term financing within the sector.
Strategic Alignment with Nigeria’s Agenda
Representing the Nigerian government, the delegation reaffirmed the nation’s commitment to implementing key economic reforms under the Renewed Hope Agenda, as well as the structured investment framework to be provided by the forthcoming National Development Plan (2026–2030). Officials noted that these reforms are crucial for creating a stable environment capable of attracting sustainable foreign investments.
The €190 million agriculture credit line is part of a broader, sustained partnership with the EU. Nigeria already benefits from other significant EU-backed programs, including a million technical assistance grant to strengthen the local regulatory framework for vaccine production and a million credit facility aimed at deepening access to finance within the pharmaceutical industry.
This latest EU-Nigeria financing deal is expected to be a major catalyst in modernizing the agricultural sector, significantly improving food security, and strengthening Nigeria’s export competitiveness in the years to come.
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