World Bank approves $500m boost for Nigeria’s agriculture, targets 1m farmers

• The World Bank has approved a $500m credit facility for Nigeria’s agriculture sector
• The AGROW project targets smallholder farmers, food security, and job creation
• The programme focuses on rice, maize, cassava, and soybeans value chains, including support for aggregation, processing, and improved market access

The World Bank has approved a $500 million credit facility for Nigeria to strengthen agricultural productivity and value chains, with a focus on smallholder farmers and food security.

The funding, provided through the International Development Association, will support the Nigeria Sustainable Agricultural Value Chains for Growth Project, known as AGROW.

According to a statement released on Thursday, April 2, “The World Bank has approved a $500m International Development Association credit for the Nigeria Sustainable Agricultural Value Chains for Growth Project, aimed at increasing smallholder farmers’ productivity, strengthening agricultural value chains, and creating jobs while improving food and nutrition security.”

The loan, approved on March 30, 2026, is expected to tackle longstanding challenges in Nigeria’s agricultural sector, which, despite being the country’s largest employer, continues to face structural setbacks.

The bank noted, “Agriculture remains Nigeria’s largest source of employment, yet low productivity, limited access to quality inputs, climate shocks, and weak market linkages for smallholder farmers have constrained its potential to generate better jobs and affordable food.”

It further highlighted that many farmers remain trapped in subsistence agriculture, contributing to ongoing food and nutrition insecurity nationwide.

Under the AGROW initiative, agribusinesses that source produce from smallholder farmers will receive support through a results-based matching grant scheme.

The programme will prioritise key value chain activities such as aggregation, post-harvest handling, agro-processing, and market access, particularly for crops like rice, maize, cassava, and soybeans.

The project will also enhance agricultural research and extension services, improve access to climate-resilient seeds, and introduce a national digital farm and farmer registry.

Farmers will benefit from digital advisory tools, including localised weather and climate data to improve resilience and productivity.

Additionally, the programme will strengthen seed and fertiliser regulatory frameworks and promote private sector participation in the production of high-quality inputs.

“In addition, the project will improve seed and fertiliser regulatory systems, expand early-generation seed supply, enhance private sector production of high-quality seed and farmers’ access to quality fertiliser, and promote transparent and responsible land-based investments,” the statement added.

The initiative will also emphasise inclusivity, ensuring active participation of women and youth, while incorporating strong monitoring and citizen engagement systems.

Speaking on the development, the World Bank Country Director for Nigeria, Mathew Verghis, described the programme as transformative.

“AGROW is a transformative step for Nigeria’s agriculture, empowering smallholder farmers, unlocking private sector–led growth, and strengthening food security in a sustainable way,” he said.

He added, “This project is expected to benefit up to one million smallholder farmers, mobilise significant private investment, and increase yields across targeted crops. At the same time, it will help to ensure improved food and nutrition security and greater resilience to climate shocks among farmers in the participating states across Nigeria.”

The six-year initiative, scheduled to run from 2026 to 2032, is projected to attract an additional $220 million in private agribusiness investments.

The project aligns with Nigeria’s broader strategy to boost agricultural productivity, create jobs, and transition smallholder farming into commercially viable agribusiness ventures.

Nigeria continues to rely on concessional financing from multilateral institutions to support development efforts.

According to the Debt Management Office, the country’s exposure to the World Bank Group stood at $19.54 billion as of September 30, 2025, accounting for over 40 per cent of its total external debt stock of $48.46 billion.