World Bank approves $500m loan for Nigeria’s agriculture sector
The World Bank has approved a $500 million International Development Association (IDA) credit for Nigeria to boost agricultural productivity, strengthen value chains, and improve food security under a new programme tagged the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) Project.
This was disclosed in a statement published on the bank’s website, where it outlined the objectives and expected impact of the initiative on Nigeria’s agriculture sector.
The financing is aimed at addressing long-standing structural challenges in Nigeria’s agriculture sector, where low productivity, climate shocks, and weak market access have continued to limit output despite the sector remaining the country’s largest employer.
The statement read, “The World Bank has approved a $500 million International Development Association (IDA) credit for the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) Project, aimed at increasing smallholder farmers’ productivity, strengthening agricultural value chains, and creating jobs while improving food and nutrition security.”
According to the statement, the project will focus on improving the productivity of smallholder farmers while linking them more effectively to markets and agribusinesses.
“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,” the World Bank Country Director for Nigeria, Mathew Verghis, said in the statement.
He added that the initiative is expected to benefit up to one million smallholder farmers, while also mobilising significant private sector investment into the agricultural value chain.
Under the programme, agribusinesses that commit to sourcing produce from smallholder farmers will receive support through a results-based matching grant facility. The funding will prioritise aggregation, post-harvest handling, agro-processing, and improved market access.
The intervention will target key staple crops, including rice, maize, cassava, and soybeans, which are critical to Nigeria’s food system and industrial value chains.
In addition, the project will strengthen agricultural research and extension systems, expand access to improved and climate-resilient seeds, and introduce a national digital farm and farmer registry to improve planning and transparency.
Farmers are also expected to benefit from digital advisory services, including localised weather and climate information designed to improve yields and resilience to environmental shocks.
The statement noted that AGROW will address critical gaps in Nigeria’s input systems by improving seed and fertiliser regulatory frameworks, increasing early-generation seed supply, and supporting private sector production of high-quality seeds.
Efforts will also be made to enhance farmers’ access to quality fertilisers and promote transparent land-based investments to attract more private capital into agriculture.
The six-year project, scheduled to run from 2026 to 2032, is expected to crowd in an additional $220 million in private agribusiness investment, reinforcing its market-driven approach.
