The World Bank has approved a $500m credit facility for Nigeria to strengthen its agricultural sector, with a focus on smallholder farmers, value chain development, and food security.
The funding, provided through the International Development Association, will support the Nigeria Sustainable Agricultural Value Chains for Growth Project (AGROW). The initiative is designed to improve productivity, enhance market access, and generate employment opportunities across the country.
In a statement released on Thursday, April 2, 2026, the World Bank disclosed that the project was approved on March 30, 2026. It aims to increase smallholder farmers’ output, strengthen agricultural value chains, and improve food and nutrition security nationwide.
The World Bank noted that although agriculture remains Nigeria’s largest source of employment, the sector continues to face significant challenges, including low productivity, limited access to quality inputs, climate-related shocks, and weak market linkages. These constraints have hindered its ability to deliver better jobs and affordable food.
Under the AGROW programme, agribusinesses sourcing produce from smallholder farmers will receive support through a results-based matching grant scheme. The project will prioritise key value chain activities such as aggregation, post-harvest handling, agro-processing, and improved market access, with a focus on crops like rice, maize, cassava, and soybeans.
The initiative will also strengthen agricultural research and extension services, expand access to climate-resilient seeds, and establish a national digital registry for farmers and farmlands. In addition, farmers will benefit from digital advisory services, including localised weather and climate information to boost productivity and resilience.
Efforts will also be made to improve seed and fertiliser regulatory systems, increase early-generation seed supply, and encourage private sector participation in the production of high-quality inputs. The project is expected to promote transparent and responsible land-based investments.
The World Bank emphasised that the programme will incorporate strong coordination, monitoring, and citizen engagement mechanisms, with a deliberate focus on women and youth inclusion.
Speaking on the development, the World Bank Country Director for Nigeria, Mathew Verghis, described AGROW as a transformative initiative for the agricultural sector.
He said the project is expected to benefit up to one million smallholder farmers, attract significant private investment, and increase yields across targeted crops, while enhancing food security and resilience to climate shocks.
The six-year project, scheduled to run from 2026 to 2032, is also projected to mobilise an additional $220m in private agribusiness investment.
Nigeria continues to rely on concessional financing from multilateral institutions to fund development programmes. Data from the Debt Management Office shows that the country’s exposure to the World Bank Group stood at $19.54bn as of September 30, 2025, accounting for about 40.34 per cent of its total external debt stock of $48.46bn.
