What are the steps to obtain agric loans in Nigeria? Agriculture is one of the most thriving and successful sector in Nigeria. Nigeria has been forced to take agricultural sector more seriously due to the decline in the country’s economy.

The sector has been noted to be the highest employer of labour in West Africa and still, is not more that the peasant farming that satisfies only the families’ needs. This is one of the reason why the government has decided to start giving agricultural grants and credit initiatives.


Regardless of the fact that the sector is now taken more seriously and that the Central Bank of Nigeria has allocated about 200 million to the sector, farmers still have problems in getting loans.


Inaccessibility to loans is one of the major problems farmers are facing in Nigeria which is as a result of them not knowing how to get the loan needed for their farming. This has been a major concern to farmers and even the country at large.

This post will be addressing this major issue and will be talking about the approaches farmers need to take in getting loans, what to do and how to do it in order to get financial institutions, and the government to give loans for their agricultural businesses.

There are some major steps farmers need to take towards getting loans for their agricultural businesses which are:

Have a Knowledge of the Type of Agricultural Businesses that Have Access to Loan

Basically, farmers should first have knowledge of the type of agricultural businesses that can access agric loans. This is because not all businesses under agriculture can access loan. So knowing them will help farmers to know if they can access the loan or not before getting worked up over what is not theirs. It will save them a lot.

Some of the agricultural businesses that have access to agric loans in Nigeria (with the reasons why they are on the list) are:

Poultry Farming: This is one of the agricultural business that have access to loans, the being that it involves a huge capital.

Cassava Farming: It has been in the hem of agricultural products to be developed extensively due to its versatility. It is one of the big products the federal government is encouraging investors to develop.

Rice Farming: This is the most consumed and imported food in Nigeria which calls for the need to develop Nigeria’s rice farm.

Pig Farming: The opportunity to set up a pig farm is not easy and does not come cheap.

Oil Palm Business: In the 1900s, Nigeria was the highest exporter of palm nuts which has reduced which calls for the need for us to get back to where we were then.

Other Agribusinesses:

  • Maize Farming
  • Fish Farming
  • Cotton Farming
  • Snail Farming

Apply for the Agricultural Loan

If you discover after the first step that your business has access to agric loans, then you will have to visit the Bank of Agriculture (BOA) in your state to know the complete loan requirements for agric businesses and how you can apply for the loan.

One very important thing you need to know about BOA is that you cannot gain access to their agricultural loan unless you bank with them for at least six months. Also, you must have at least 20% of the amount you intend borrowing from the bank with you.

Importantly, BOAs terms change periodically so the term of you banking with them for 6 months can change anytime. The loan rate for the micro credit agriculture loan is 12%. Visiting the BOA in your state will help you in getting more detailed information and you can also call them on 07040202222 or 07042262222.

Farmers should note that it is not only BOAs that gives loans in the agricultural sector, commercial banks also give loans through the federal government or other bodies. Some of the banks that give agricultural micro loans to farmers are:

Union Bank: It offers agricultural loan to agro-businesses whether small or big. The only evidence of ownership required by the bank is the right to use whatever portion of your land for what you want.

After that, you are allowed to choose from their loan facilities. They have short, medium and long term loans depending on the period of time. There is also fixed capital and working capital facility. The requirements needed to get loans from Union Bank are:

  • Opening an account with them.
  • Submitting a loan application to their branch business development manager.
  • Paying 10% of the total fund you applied for.
  • Stating the reason for the loan.
  • Stating the method of farm production you will adopt and the yields as predicted.

United Bank For Africa (UBA)
Stanbic IBTC
First Bank and other micro finance banks.

You should note that all the banks have different requirements which you will have to meet, an example is the Union Bank’s requirements stated above.


Most of these financial institutions ask existing farmers to present a financial statement to know their income statement so far while new farmers are asked to present their business plan for the bank to review.