Key points
- World Bank approves $500 million credit for Nigeria’s AGROW project.
- Initiative targets smallholder farmers, agribusiness growth and food security.
- Project expected to benefit one million farmers and attract private investment.
Main story
The World Bank has approved a $500 million credit facility to support Nigeria’s agricultural sector under a new initiative aimed at strengthening value chains, improving productivity and enhancing food security.
The funding, provided through the International Development Association (IDA), will finance the Nigeria Sustainable Agricultural Value Chains for Growth Project (AGROW), a six-year programme scheduled to run from 2026 to 2032.
According to a statement from the global lender, the project is designed to boost smallholder farmers’ productivity, strengthen market linkages and create jobs across the agricultural value chain.
The bank noted that agriculture remains Nigeria’s largest employer but continues to underperform due to structural challenges, including low productivity, limited access to quality inputs, climate shocks and weak market systems.
To address these gaps, the AGROW project will support agribusinesses sourcing produce from smallholder farmers through a results-based matching grant scheme, focusing on key crops such as rice, maize, cassava and soybeans.
The programme will also strengthen agricultural research and extension services, expand access to climate-resilient seeds and establish a national digital farm and farmer registry to improve data-driven decision-making.
The issues
Despite its significant contribution to employment, Nigeria’s agricultural sector remains largely subsistence-based, with millions of farmers lacking access to modern inputs, financing and markets.
Food and nutrition insecurity also persists, compounded by climate change and inefficient value chains, limiting the sector’s capacity to drive economic growth and job creation.
Additionally, weak regulatory systems for seeds and fertilisers have constrained productivity and reduced the quality of agricultural outputs.
What’s being said
The World Bank Country Director for Nigeria, Mathew Verghis, described the initiative as a transformative intervention for the sector.
“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 that the project is expected to benefit up to one million farmers, mobilise significant private investment and improve resilience to climate shocks across participating states.
The bank further stated that the initiative would improve seed and fertiliser regulatory systems, promote transparent land-based investments and enhance private sector participation in input production.
What’s next
The AGROW project is expected to commence implementation in 2026, with a strong focus on coordination, monitoring and citizen engagement, particularly among women and youth.
It is also projected to attract an additional $220 million in private agribusiness investment, supporting the transition from subsistence farming to commercially viable agriculture.
Bottom line
The $500 million World Bank-backed AGROW initiative signals a major push to revitalise Nigeria’s agricultural sector, but its success will depend on effective implementation, private sector participation and sustained reforms to address longstanding structural challenges.
