Key points
- World Bank approves $500 million credit for Nigeria’s agricultural sector.
- AGROW project targets smallholder farmers, value chains, and food security.
- Initiative expected to benefit one million farmers and attract $220 million in private investment.
Main story
The World Bank has approved a $500 million International Development Association (IDA) credit to support Nigeria’s agricultural sector under a new initiative aimed at strengthening productivity, value chains, and food security.
The funding will drive the Nigeria Sustainable Agricultural Value Chains for Growth Project (AGROW), a six-year programme scheduled to run from 2026 to 2032, with a focus on smallholder farmers and agribusiness development.
In a statement, the global lender said the project would enhance productivity, improve market linkages, and create jobs, while addressing persistent food and nutrition challenges across the country.
Despite being Nigeria’s largest employer, agriculture continues to face structural constraints, including low productivity, limited access to quality inputs, climate-related shocks, and weak integration into markets.
To address these challenges, the AGROW programme will deploy a results-based matching grant system to support agribusinesses sourcing from smallholder farmers. It will prioritise key crops such as rice, maize, cassava, and soybeans, while strengthening aggregation systems, post-harvest handling, agro-processing, and market access.
The project will also expand agricultural research and extension services, promote access to climate-resilient seeds, and establish a national digital registry for farms and farmers. In addition, farmers will benefit from digital advisory tools, including localised weather and climate information.
The initiative is further expected to improve regulatory systems for seeds and fertilisers, increase the supply of early-generation seeds, and boost private sector participation in the production of high-quality agricultural inputs.
The issues
Nigeria’s agricultural sector, though critical to employment and food supply, remains largely underdeveloped, with many farmers trapped in subsistence production. Poor infrastructure, weak value chains, and climate vulnerabilities continue to limit the sector’s ability to deliver food security and economic growth.
What’s next
Implementation of the AGROW programme is set to commence across participating states, with coordinated efforts involving government agencies, private sector actors, and development partners.
The project is also expected to attract an additional $220 million in private agribusiness investment, further strengthening Nigeria’s agricultural ecosystem.
Bottom line
The $500 million AGROW initiative signals a significant push to transform Nigeria’s agriculture from subsistence to a commercially viable, resilient sector capable of driving food security, job creation, and economic growth.
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