By Adebayo Obajemu
The Bank of Agriculture (BoA) has warned that Nigeria’s persistent electricity shortages are posing a serious threat to food security, agricultural productivity and rural economic development, as millions of citizens and farming communities remain without reliable power supply.
The bank raised the concern during a capacity-building workshop on the proposed Clean Energy Access Framework (CEAF) held in Kaduna for its staff. The initiative was organised in collaboration with DalaHill LP and supported by the Africa Climate Foundation (ACF) as part of efforts to strengthen the bank’s ability to finance renewable energy projects within the agricultural sector.
Speaking at the event, the Head of the Clean Energy Delivery and Innovation Unit at BoA, Dr Adnan Aminu, said nearly 86.8 million Nigerians, representing about 46.4 per cent of the population, still lack access to electricity, while more than 120,000 farming communities operate without dependable power infrastructure.
According to him, inadequate electricity has become a major constraint on agricultural growth, affecting activities across the value chain, including production, processing, storage and distribution.
Aminu noted that many farmers and agro-processors depend on diesel and petrol-powered equipment to run their operations, a situation that significantly increases production costs and reduces profitability.
He said the bank was taking steps to address the challenge through the development of a Clean Energy Access Framework designed to support investments in renewable energy technologies for agriculture.
The framework, he explained, would facilitate financing for projects such as solar-powered irrigation systems, mini-grids, cold storage facilities and renewable energy-driven processing equipment.
“We are positioning the Bank of Agriculture to become a credible financier of clean energy solutions that can improve efficiency and productivity across the agricultural value chain,” Aminu said.
He disclosed that the framework is expected to be finalised before the end of the month, after which the bank will begin engaging government agencies, development partners and private investors to mobilise resources for implementation.
According to him, the bank plans to provide loans ranging from ₦500,000 to ₦5 million for small-scale renewable energy projects, while larger projects with strong commercial prospects will be eligible for higher levels of financing.
Project Manager at DalaHill LP, Toby Ilori, said Nigeria’s vast agricultural potential has yet to translate into significant climate finance inflows because many institutions lack the technical structures and frameworks required by international funding organisations.
She said the partnership with BoA is aimed at strengthening the institution’s capacity to design and implement bankable clean energy projects capable of attracting climate-related funding.
Ilori stressed that poor electricity supply continues to undermine agricultural processing and storage, leading to high post-harvest losses and reduced competitiveness for Nigerian farmers.
“We are providing the technical expertise needed to help the Bank of Agriculture structure viable clean energy investments that can attract climate finance and deliver sustainable results,” she said.
Also speaking, BoA’s Head of Strategy and Performance Management, Ogaruwu Anselm, said the initiative is in line with global efforts to promote climate-smart agriculture and reduce reliance on fossil fuels.
He highlighted the potential of renewable energy solutions, particularly solar-powered cold storage systems, to reduce the significant losses farmers incur after harvest due to inadequate storage facilities.
“Clean energy-powered cold chains can help preserve agricultural produce, increase farmers’ earnings and enhance food security across the country,” Anselm said.
He added that expanding access to renewable energy in rural communities would improve productivity, attract climate finance and support Nigeria’s transition to a more sustainable and climate-resilient economy.
The bank said the ongoing Catalysing Clean Energy Solutions for Agricultural Value Chains Project has already led to the establishment of a dedicated Clean Energy Delivery and Innovation Unit within BoA, which will drive efforts to attract local and international funding for renewable energy projects targeted at transforming the agricultural sector.