In a major step towards revitalising its agriculture sector, the Federal Government of Nigeria on Wednesday signed a $158.15 million financing agreement with the International Fund for Agricultural Development (IFAD) to implement the Value Chain Programme in Northern Nigeria (VCN).
The agreement was signed in Abuja by the Minister of Agriculture and Food Security, Abubakar Kyari, on behalf of Nigeria, and IFAD’s Regional Director for West and Central Africa, Bernard Hien. The VCN initiative aims to enhance value chain development and value addition for farmers across nine northern states: Borno, Yobe, Jigawa, Bauchi, Kano, Katsina, Kebbi, Sokoto and Zamfara.
The eight-year programme, co-funded by IFAD, the French Development Agency (AFD), and the Nigerian government, is part of the broader Renewed Hope Agenda and is expected to improve livelihoods, reduce poverty, and strengthen food security for rural communities.
Vice President Kashim Shettima, speaking at the signing ceremony at the Presidential Villa, described the initiative as a bold intervention to reposition the northern economy and restore dignity to farming families.
“This is a declaration of faith in the North—not as a region of deficits but of abundance. It reflects President Tinubu’s commitment to prioritising what matters most—people, productivity, and prosperity,” Shettima stated.
The Vice President explained that the VCN project would integrate with ongoing initiatives such as the Special Agro-Industrial Processing Zones (SAPZs), serving as a pipeline for raw materials to reduce Nigeria’s dependency on exporting raw produce.
To ensure transparency and impact, the federal government will deploy digital tools for farmer registration, input distribution, and market tracking, Shettima added, noting that such measures would also address migration and insecurity by creating income-generating opportunities.
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The agreement’s endorsement followed Vice President Shettima’s call during the UN Forum on Sustainability Standards in Rome (July 2023) for IFAD to expand its support for Nigeria’s agri-food transformation.
Minister Abubakar Kyari described the agreement as a milestone that aligns with the Tinubu administration’s agenda to empower smallholder farmers, women, and youth. He stressed the inclusive participation of state governments as a vital element for the programme’s success.
The National Assembly, represented by former Senate President Ahmed Lawan, pledged legislative backing for the initiative, calling it a transformative step for food security and rural development.
Governors Babagana Zulum (Borno), Umar Namadi (Jigawa), and Dikko Radda (Katsina) expressed support for the programme, urging implementers to consider reviewing timelines for optimal state-level benefits.
IFAD Country Director Dede Ekoue said the VCN project will directly benefit 3.1 million rural residents and create over 30,000 jobs, particularly for women and youth. The programme will also see the construction of more than 229 kilometres of rural roads to improve access to markets.
A key highlight of the ceremony was the signing of a joint roadmap agreement between IFAD and the Federal Government for the accelerated rollout of the VCN programme.
