The Bank of Agriculture (BoA) has warned that Nigeria’s deepening energy poverty is undermining food security, agricultural productivity and rural livelihoods, with millions of Nigerians and over 120,000 farming communities still lacking reliable electricity.
The bank raised the concern during a capacity-building workshop on the Clean Energy Access Framework (CEAF) for its staff in Kaduna. The programme was organised in partnership with DalaHill LP and funded by the Africa Climate Foundation (ACF).
Speaking at the workshop, Dr. Adnan Aminu, Head of the Clean Energy Delivery and Innovation Unit at BoA, said about 86.8 million Nigerians, 46.4 per cent of the population, do not have access to electricity, while more than 120,000 farming communities continue to operate without dependable power.
According to him, the energy deficit is slowing agricultural production, processing, storage and value addition, forcing farmers and agro-processors to rely on costly diesel and petrol-powered equipment. “Agriculture requires energy not only for production but also for processing, storage, value addition and virtually every stage of the agricultural value chain. What we are doing is positioning the Bank of Agriculture to credibly finance clean energy solutions for the sector,” Aminu said.
Aminu disclosed that the bank is developing a Clean Energy Access Framework that will support financing for renewable energy technologies, including:
- Solar-powered irrigation systems
- Solar-powered cold storage facilities
- Mini-grids
- Clean energy-powered processing equipment
He said the framework is expected to be completed before the end of the month, after which the bank will begin mobilising funding from development partners, government and private investors.
Under the initiative, small-scale projects will be eligible for financing ranging from ₦500,000 to ₦5 million, while larger, commercially viable projects could access higher funding.
Toby Ilori, Project Manager at DalaHill LP, said Nigeria possesses enormous agricultural potential but has struggled to attract global climate finance because many institutions lack the technical capacity and implementation frameworks required by international financiers.
She said DalaHill is helping the Bank of Agriculture strengthen its systems and expertise to structure bankable clean energy projects capable of attracting climate funding. “Our role is to provide the expertise and advisory support that will enable the Bank of Agriculture to structure clean energy investments capable of attracting climate finance and delivering sustainable impact,” Ilori said.
She noted that poor electricity supply continues to weaken agricultural processing, storage and supply chains, making it difficult for farmers to preserve produce or compete effectively in domestic and international markets. “We have the land, we have the people and we have the knowledge. What has been missing is the infrastructure and financing framework needed to unlock Nigeria’s agricultural potential,” she added.
Also speaking, Ogaruwu Anselm, BoA’s Head of Strategy and Performance Management, said the initiative aligns with global efforts to promote climate-smart agriculture while reducing dependence on fossil fuels.
He noted that renewable energy technologies, particularly solar-powered cold storage facilities, would significantly reduce post-harvest losses that continue to erode farmers’ incomes. “Most agricultural belts experience huge post-harvest losses because farmers lack adequate storage facilities. Clean energy-powered cold chains will help preserve produce, improve farmers’ incomes and strengthen Nigeria’s food security,” Anselm said.
He added that the initiative would improve agricultural productivity, expand access to climate finance and support Nigeria’s transition to a low-carbon, climate-resilient economy.
