The World Bank has approved a $500 million credit facility for Nigeria to support agricultural productivity, strengthen value chains, and improve food security under a new nationwide programme targeting smallholder farmers.
The funding, provided through the International Development Association (IDA), will finance the Nigeria Sustainable Agricultural Value Chains for Growth Project, known as AGROW. The initiative is designed to improve farm output, expand market access, and create jobs across the agricultural sector.
According to a statement published by the World Bank, agriculture remains Nigeria’s largest employer but continues to face structural challenges, including low productivity, limited access to quality inputs, climate shocks, and weak market linkages affecting smallholder farmers.
The AGROW project will support agribusinesses that source produce from smallholders through a results-based matching grant system. Priority crops under the programme include rice, maize, cassava, and soybeans, with interventions covering aggregation, post-harvest handling, agro-processing, and improved market access.
The project will also strengthen agricultural research and extension services, expand access to climate-resilient seeds, and establish a national digital farm and farmer registry. Farmers are expected to benefit from digital advisory tools, including localized weather and climate information.
In addition, the programme aims to improve seed and fertiliser regulatory systems, expand early-generation seed supply, and encourage private-sector participation in the production of high-quality agricultural inputs. It also includes provisions for transparent land-based investments and stronger monitoring and citizen engagement mechanisms, with attention to women and youth inclusion.
Commenting on the initiative, World Bank Country Director for Nigeria, Mathew Verghis, described AGROW as a major step toward transforming the sector. He said the project is expected to benefit up to one million smallholder farmers, mobilise additional private investment, and improve resilience to climate shocks.
The six-year project, scheduled to run from 2026 to 2032, is also expected to attract about $220 million in private agribusiness investment. The initiative aligns with Nigeria’s broader priorities of boosting productivity, expanding value addition, and transitioning smallholder farming toward commercially viable agribusiness systems.
Data from the Debt Management Office shows Nigeria’s exposure to the World Bank Group stood at $19.54 billion as of September 2025, accounting for about 40.34 per cent of the country’s total external debt stock of $48.46 billion.