Kwara Unlocks Collateral-Free Loans: Boosting Agribusiness and Food Production

In a renewed push to empower farmers and deepen food production across the State, the Kwara State Government has secured a strategic partnership with the Bank of Agriculture (BOA) to deliver collateral-free loans to farmers, agribusinesses, women, and youth-led enterprises.

The partnership, driven through the Ministry of Agriculture and Rural Development, was formalized during the Commissioner, Dr. Afees Abolore Alabi’s working visit to the Ilorin Branch of the Bank, where he met with the Branch Manager, Alhaji Tomori Mahruf.

The loan scheme comes as preparations for the 2025 planting season are underway. It is designed to eliminate financial bottlenecks and promote inclusive participation across the agricultural value chain.

The loan programme offers two categories:

– Micro Loans (₦250,000 and below) are tailored for smallholder farmers, backyard growers, food processors, and SMEs operating in the agricultural space. These loans require no collateral, feature simplified documentation, and are ideal for quick-impact agricultural activities.

– Macro Loans (up to ₦1 million): This category supports larger-scale operations and includes three targeted packages:

1. YARN (Youth Agricultural Revolution in Nigeria): For young entrepreneurs involved in mechanized farming, agri-tech, and value chain enterprises.

2. GEM (Grow and Earn More): For general farmers looking to expand their production scale.

3. WAE (Women Agricultural Enterprise): For women engaged in any stage of agriculture, from production to processing and distribution.

Civil servants are also eligible to access these facilities through salary-backed arrangements.

Speaking during the visit, the Commissioner for Agriculture and Rural Development, Dr. Afees Abolore Alabi, described the partnership as a deliberate move by the AbdulRahman AbdulRazaq-led administration to strengthen food systems and create opportunities across the board.

“This is a bold step to democratize access to credit in agriculture. It opens new frontiers for farmers, women, and younger entrepreneurs to scale their ventures and contribute meaningfully to food security in Kwara,” he added.

In his remarks, the Branch Manager of the Bank of Agriculture, Alhaji Tomori Mahruf, assured of the Bank’s readiness to support the initiative.”We are excited about this collaboration and are fully committed to helping farmers in Kwara access credit with ease. Our loan officers are available to provide guidance and ensure a smooth application process,” he said.

The Kwara State Government continues to prioritize inclusive and gender-responsive agricultural policies aimed at building a robust rural economy, reducing poverty, and promoting self-reliance through agribusiness.

Interested farmers, agripreneurs, and civil servants are encouraged to contact the Kwara State Ministry of Agriculture and Rural Development Help Desk for enquiries and application support. (kwaramoc.com.ng).