BREAKING: Nigerian, IFAD Sign $158m Agreement to Revolutionise Agriculture in Northern Nigeria

The federal government on Wednesday, signed a financing agreement for the $158.15 million Value Chain Programme in Northern Nigeria (VCN).

The pact signing formed part of ongoing efforts by the government at the centre to revolutionise the agriculture sector in the country.

With the signing of the agreement, the implementation of the $158.15 million VCN project begins immediately to support agriculture value chain development and value addition for farmers in nine states of the northern part of the country.

The initiative is co-funded by the International Fund for Agricultural Development (IFAD), the French Development Agency (AFD), and the Government of Nigeria.

The eight-year initiative validated on March 21, 2024, was conceived following Vice President Kashim Shettima’s request during UNFSS stocktaking in Rome on July 24, 2023, that IFAD should scale-up its portfolio in Nigeria and mobilise additional partners and donors to support the agri-food transformation and food security of the Renewed Hope Agenda.

It is expected to sustainably reduce poverty, enhance nutrition, and better resilience of rural and most vulnerable populations in the nine northern states namely Borno, Bauchi, Kano, Katsina, Kebbi, Jigawa, Sokoko, Yobe and Zamfara.

Speaking while signing the financing agreement for the VCN project at the State House, Abuja, Shettima described the initiative as a product of critical thinking about the economic reality of the northern region.

According to him, it was a fulfilment of the promise made by the administration of President Bola Tinubu to reduce poverty in Nigeria, restore dignity to the nation’s farmers, and ensure food security.

“It is a declaration of faith in the North—not as a region of deficits, but as a place of abundance. It also invites us to play our part in fulfilling the promise to reduce poverty, nourish our people, and restore dignity to farming families across Bauchi, Borno, Jigawa, Katsina, Kebbi, Sokoto, Kano, Yobe, and Zamfara.

“What has brought us together today is an investment of $158.15 million, co-financed by the International Fund for Agricultural Development (IFAD), the Agence Française de Développement (AFD), the Federal Government of Nigeria, and other stakeholders. This reflects President Bola Ahmed Tinubu’s commitment to prioritising what matters most—people, productivity, and prosperity,” the Vice President declared.

Recalling that the administration recently commenced foundation laying for the construction of Special Agro-Industrial Processing Zones (SAPZs) across Nigeria, Shettima said the VCN programme would feed into the SAPZs, serving as “a steady pipeline of raw materials and ensuring our processors no longer grope for quality inputs.

“This synergy will shift us from exporting raw produce to exporting value-added goods—creating jobs, wealth, and industrial stability,” he added.

The Vice President observed that, “the recent global trade disruptions and the resurgence of protectionism are loud warnings,” to Nigeria to begin to grow what its people eat and produce what they trade.

His words: “The agricultural tariffs and retaliatory postures of global powers like the U.S. and China have rattled commodity chains. For a nation that has long relied on food imports, the message is clear: we must grow what we eat and produce what we trade.

“The VCN answers this call. By making wheat, maize, and animal feed viable for commercial cultivation, and by investing in irrigation, processing, and storage facilities in states like Kebbi and Jigawa, we are not just securing food—we are laying the groundwork for agricultural exports that can rival our oil.

“What makes this programme exceptional is that it targets the underserved: women, youth, persons with disabilities, and returnees. It recognises that peace and prosperity are twin goals—and that in communities scarred by conflict, agriculture is not just a livelihood; it is rehabilitation.”

Noting that the federal government will deploy digital tools to track every step, “from farmer registration to market access, from input distribution to yield analysis,” the VP assured that “in regions where migration and insecurity are fuelled by joblessness, the VCN provides vehicles for enterprise, income, and dignity.”

Earlier, former Senate President, Senator Ahmad Lawan, who spoke on behalf of the National Assembly, commended IFAD, the federal government and other partners for the conception of the programme, describing it as a well-thought-out initiative that will transform the lives and livelihoods of many in the target states and beyond.

He pledged the commitment and support of the National Assembly in the implementation of the various interventions contained in the programme.

On his part, Minister of Agriculture and Food Security, Senator Abubakar Kyari, said the signing of the financing agreement represents a significant milestone in the efforts to transform the agricultural landscape in Nigeria under the Renewed Hope Agenda of the Tinubu administration

He noted that the participation of the nine states and the presence of other critical stakeholders underscore the commitment of the sub-nationals and the federal government in fostering inclusivity in agricultural development and economic empowerment.

The Minister expressed confidence that the VCN would deliver programmes and projects that would improve agricultural productivity and the overall well-being of small-holder farmers, farmer groups, and women across the region.

In separate remarks, Governors of Borno, Prof. Babagana Zulum; Jigawa, Alhaji Umar Namadi, and Katsina, Alhaji Dikko Radda, applauded the leadership provided by Tinubu and Shettima, in the implementation of the VCN programme and other schemes across northern Nigeria.

They pledged their commitment and support in the actualisation of the objectives of the various components of the programme and urged the implementors to review the design and timeline for implementation to enable states to maximise the benefits therein.

In her remarks, the Country Director of IFAD, Mrs Dede Ekoue, said the programme was a $158.15 million project designed to transform agribusiness in nine northern states of Borno, Yobe, Jigawa, Bauchi, Kano, Katsina, Kebbi, Sokoto and Zamfara, over a period of eight years, targeting about 3.1 million household members.

According to her, interventions targeted under the programme woulf focus on climate-smart agriculture, leveraging innovative technologies; improving post-harvest handling and value chain addition; increase access to business development services for youths and women agri-preneurs; boost access to financial services and scale up access to digital solutions for productivity, among others.

The IFAD Country Director added that expected results from the interventions included the creation of over 30,000 jobs and entrepreneurial opportunities for youths, women, and vulnerable groups and the construction of over 229km of roads across the region to enhance access to market, among others.

She applauded the commitment and vision of the President and Vice President, and emphasised the need for all stakeholders in the project to work in unison for the actualisation of set objectives and in the overall interest of the national economy.

The high point of the occasion was the signing of the agreement for the Joint Roadmap for Accelerated Start-up between the federal government and IFAD.