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🌾 Agricultural Finance Facility (AFF) – The Complete Guide
1. What is the AFF (Agricultural Finance Facility)?
The AFF is a specialized lending programme operated by the NIRSAL Microfinance Bank (NMFB)—a public/private initiative backed by the Central Bank of Nigeria (CBN) and the Bankers’ Committee. It provides low‑interest, long‑term loans for crop farming, livestock, aquaculture, agri‑processing, and farm machinery hire. Qualified borrowers may also benefit from CBN’s Agricultural Credit Guarantee Scheme Fund (ACGSF) with interest rebate under the Interest Drawback Programme (IDP)
2. Why AFF Matters
- Promotes Agricultural Value Chain Financing: Bridges funding gaps in rural Nigeria by supporting farmers and SMEs across agriculture.
- Single-digit Interest Rates + Rebates: Affords access to capital at ~9% interest, with potential rebates if you qualify under CBN’s IDP (Agritech Digest, Central Bank of Nigeria).
- Longer Tenor with Moratorium: Loans typically span 3–5 years, sometimes including grace periods, ideal for farm cycles.
- Inclusive Model: No conventional collateral required in many cases, instead risk-sharing structures back loans via NIRSAL risk guarantee scheme (Agritech Digest).
3. Eligibility & Who Can Apply
To access AFF:
- Be an existing or new NMFB customer with valid BVN-linked bank account
- Operate in eligible agricultural value chains: crop production, livestock, processing, aquaculture, or equipment hire
- Submit a viable farm business plan or project proposal, with budgets and production timelines
- Provide identification, BVN, project plan, possibly guarantors or equity contribution, depending on risk assessment (nadf.gov.ng, Agritech Digest).
4. How to Apply – Step by Step
- Register on the NMFB loan portal or visit a local NMFB branch.
- Select AFF and upload required documents: business plan, CAC (if applicable), BVN, evidence of agricultural activity.
- NMFB screens and sends application to CBN and guarantees via ACGSF if eligible.
- Loan appraisal & approval by NMFB based on viability, credit history.
- Post-approval, funds are disbursed in cash or in-kind inputs, depending on the value chain.
- Repayment plan typically spans 3 to 5 years, with possible moratorium period.
5. Benefits of AFF for Farmers & Agribusinesses
- Access to timely capital for seed, fertilizer, irrigation, livestock, and processing needs.
- Lower risk through CBN-backed interest rebate, spreading default exposure.
- Longer runway for seasonal investments—less pressure on repayment during off-season.
- Inclusive financing that supports women, youth, cooperatives, and smallholder producers.
6. AFF vs Other CBN/NMFB Programs
| Programme | Interest Rate | Tenor | Focus | Collateral |
|---|---|---|---|---|
| AFF (Agricultural Finance Facility) | ~9% + rebate | 3–5 years | Agriculture value chains | Minimal / risk-shared |
| AGSMEIS | ~5% | Up to 5 years | SMEs including agri-business | Training + business plan |
| Anchor Borrowers’ Programme (ABP) | Subsidized | Seasonal cycle | Staple crops via anchor companies | Via anchor companies |
| Consumer Asset Finance Facility | ~interest | Up to 24 months | Farm and household asset finance | Assets from NMFB-verified vendors |
AFF rightly complements AGSMEIS—where AGSMEIS supports youth and SMEs across industries, AFF specifically targets agriculture with longer-term capital and risk mitigation via ACGSF guarantee (Agritech Digest,, Central Bank of Nigeria, Reddit).
7. Key Features & Support Structure
- Risk-Sharing via CBN’s Agricultural Credit Guarantee Scheme Fund (ACGSF) ensures up to 75% default cover for lenders (Central Bank of Nigeria).
- Interest Drawback Program (IDP): borrowers meeting criteria can get a rebate on part of interest paid.
- Farmer-Friendly Documentation: NMFB focuses on business viability over traditional collateral.
- Representative Offices Nationwide: NMFB is expanding presence across all 774 LGAs via NIPOST and agents, improving outreach for AFF and related offers (sefapcol.com).
8. Maximizing Success – Tips for Applicants
- Join farmer cooperatives or anchor-based groupings to reduce risk and ease processing.
- Prepare a solid business or crop plan, including projected revenue and cost per hectare or head of livestock.
- Ensure BVN and credit records are clean, avoid other CBN programme defaults.
- Explore parallel schemes like AGSMEIS, NYIF (Youth Fund), ABP where they align with your crop or agri business.
- Tap into technical assistance—NMFB sometimes combines finance with training via partnerships.
9. Keywords to Drive SEO Value
- Agricultural Finance Facility Nigeria
- NMFB AFF loan application
- CBN Agricultural Credit Guarantee Scheme interest rebate
- AFF NMFB interest rate 2025
- AFF vs AGSMEIS vs ABP
- SME agricultural finance Nigeria
- AFF loan requirements Nigeria
10. Real Impact & Recent Trends
Since 2019, NMFB has disbursed over N408 billion in affordable loan facilities to more than 700,000 beneficiaries, including agri-operators under AGSMEIS and AFF programmes (Agritech Digest, New Telegraph, Central Bank of Nigeria). With growing emphasis on food security, CBN and NMFB continue to scale AFF alongside national initiatives like dry-season farming and seed/grain financing supported by AfDB loans in 2025
📘 NMFB AFF Loan FAQs — 2025 Edition
1. What is the AFF loan for 2025?
The Agricultural Finance Facility (AFF) is NMFB’s flagship agri-loan program backed by the CBN, designed to provide single-digit, long-term financing (usAgritecually ~9% interest) to eligible farmers, cooperatives, and agri-businesses in crop production, livestock, aquaculture, agro-processing, and equipment services.
2. Who can apply for the AFF loan?
Eligible applicants include:
- Individual farmers
- Registered cooperatives or agribusinesses
- Youth and women in agriculture
You must hold a BVN-linked bank account, present a viable agricultural project plan, and be an existing or new NMFB customer. Smallholders may apply without CAC registration.(Okpara.ng) - . CLICK HERE TO APPLY
3. Is collateral required?
AFF typically requires no traditional collateral. Instead NMFB leverages:
- Group or cooperative guarantees
- Guarantors and farm assets
- Risk coverage via the CBN’s Agricultural Credit Guarantee Scheme Fund (ACGSF)(Okpara.ng)
4. How much can I borrow and what are the terms?
Loan amounts range from around ₦250,000 up to ₦10 million+, depending on project size. Terms are generally 3 to 5 years, with possible grace periods for seasonal farming. Repayment can be monthly, quarterly, or seasonal.(Okpara.ng)
5. How is the application process done?
Step-by-Step:
- Visit any NMFB branch to initiate your application (AFF is not fully online).(Okpara.ng)
- Open a business or farmer account if you’re not yet a customer.
- Fill out the AFF application form, accurately detailing your agricultural project.
- Submit required documents (ID, BVN, farm plan, proof of land, photos, CAC/cooperative letter).(Okpara.ng)
- Undergo farm verification/inspection by NMFB staff.
- NMFB reviews your application, viability, creditworthiness, and risk.
- Upon approval, sign a loan offer, and the funds are disbursed into your NMFB account.(Okpara.ng)
6. Can I apply online?
AFF applications must start in-person at NMFB branches. While you may register details or learn more on the NMFB website, the full application requires physical submission.(Facebook, Okpara.ng)
7. What documents are required?
- Valid ID (e.g. NIN, Voter’s Card, Driver’s License)
- BVN
- Passport photo
- Business or farm plan
- Proof of land access (lease, ownership, community attestation)
- CAC certificate or cooperative membership letter (for groups/businesses)
- Utility bill or proof of address (may be requested)(Okpara.ng)
8. When will I receive the loan?
Once you apply with full documentation, approval and disbursement typically take 2–6 weeks. The timeline depends on document completeness, verification visits, and internal appraisal speed.
9. What happens after disbursement?
- All funds must be used strictly for agricultural purposes as outlined in your project plan.
- NMFB may perform monitoring visits periodically.
- Timely repayment makes you eligible for the CBN Interest Drawback Program (IDP)—a rebate on part of the interest paid.(Okpara.ng)
10. How can I increase my approval chances?
- Join a cooperative or cluster—group loans are preferred and reduce risk.
- Prepare a detailed, realistic farm/business plan with clear revenue projections.
- Maintain a clean credit record and avoid outstanding government loan defaults.
- Ensure visibility and accessibility of your farm for verification visits.
✅ Summary Table
| FAQ | Quick Answer |
|---|---|
| Eligibility | Farmers, agribusinesses, cooperatives with BVN |
| Loan amount | ₦250k – ₦10M+, depending on project scale |
| Interest rate | ~9% per annum with rebate via IDP |
| Collateral | No traditional collateral—uses ACGSF and guarantees |
| Application method | In-person at NMFB branches |
| Required documents | ID, BVN, farm plan, proof of land, CAC/co-op letter |
| Processing time | 2–6 weeks |
| Monitoring & compliance | Inspections and fund-use oversight |
| Rebate eligibility | Timely repayment qualifies for interest rebate |
