BOI, RMRDC sign MoU to foster agric value-chain growth

**HEADLINE:** Nigeria Agricultural Value Chain: BOI-RMRDC Partnership Eyes GDP Growth

**META_DESCRIPTION:** Bank of Industry partners RMRDC to unlock Nigeria's agric value-chain potential. What this MoU means for farm-to-market investment and GDP expansion.

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## ARTICLE:

Nigeria's agricultural sector, which contributes approximately 24% to the nation's GDP, is set for strategic repositioning following a landmark Memorandum of Understanding (MoU) between the Bank of Industry (BOI) and the Raw Materials Research and Development Council (RMRDC). This partnership signals a coordinated effort to address structural inefficiencies across Nigeria's farm-to-market ecosystem and unlock value-creation opportunities that have long remained untapped.

### What does this BOI-RMRDC partnership actually accomplish?

The agreement establishes a formal collaboration framework enabling BOI's financing capacity and RMRDC's research and raw materials expertise to converge on agricultural value-chain development. Rather than operating in silos, the two institutions will coordinate funding mechanisms for farmers, processors, and agribusinesses while anchoring investment decisions in scientifically validated research outcomes. This alignment is critical—Nigeria's agricultural productivity has stalled partly because credit flows to farming communities without corresponding technical support on crop improvement, post-harvest handling, and market linkage strategies.

The partnership specifically targets high-potential commodity value chains including cassava, cocoa, palm oil, and grains. RMRDC's laboratory and field research capabilities will inform BOI's lending criteria, ensuring capital flows toward genuinely scalable agribusiness models rather than speculative ventures. For investors, this means improved due diligence pathways and lower counterparty risk when accessing agriculture-linked credit instruments.

### Why Nigeria needs this coordination now

Nigeria's agricultural sector faces a paradox: abundant land and labor yet declining productivity and rising food import dependency. Between 2015 and 2023, Nigeria's agricultural growth averaged 2.3% annually—below population growth of 2.5%, indicating per-capita agricultural output contraction. Fragmented institutional support has exacerbated this. Farmers access credit from BOI without corresponding access to improved seed varieties or processing technology endorsed by RMRDC. Conversely, RMRDC develops innovations that fail to reach farmers due to financing gaps.

This MoU bridges that gap. By institutionalizing knowledge transfer alongside capital deployment, the partnership creates a value-chain multiplier effect. Processing clusters around cassava in Ogun and Cross River States, for instance, could access both development financing and RMRDC-validated processing standards simultaneously—accelerating industrial-scale agriculture.

### Market implications for investors and policymakers

**For investors:** Agricultural financing within Nigeria's banking sector currently represents ~3.2% of total credit—far below sectoral potential. This partnership increases the institutional credibility of agribusiness loan portfolios, attracting foreign and diaspora capital into structured agriculture funds tied to BOI-originated deals underpinned by RMRDC certification.

**For GDP expansion:** Agriculture's contribution to GDP could rise toward 28-30% if value-chain inefficiencies are addressed. The World Bank estimates that value-addition in Nigerian agriculture could generate an additional $15–20 billion in annual economic output if processing capacity and market access improve simultaneously.

**For food security:** Domestically produced processed agricultural goods reduce import pressure on Nigeria's foreign exchange reserves. The naira depreciated 70% against the dollar since 2020, partly driven by food import bills exceeding $2 billion annually. This partnership implicitly targets import substitution through domestic value-chain strengthening.

The BOI-RMRDC partnership is institutional architecture designed to convert Nigeria's agricultural comparative advantage into competitive advantage in both domestic and export markets.

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