World Bank Approves $500m Loan For Nigeria’s Agric Sector

The World Bank has approved a $500m International Development Association credit to boost Nigeria’s agricultural sector under a new programme targeting smallholder farmers, value chains, and food security.

The funding will support the Nigeria Sustainable Agricultural Value Chains for Growth Project, also known as AGROW, which aims to improve productivity, strengthen market linkages, and create jobs across the country.

A press statement obtained from the World Bank’s website on Thursday read, “The World Bank has approved a $500m International Development Association credit for the Nigeria Sustainable Agricultural Value Chains for Growth Project, aimed at increasing smallholder farmers’ productivity, strengthening agricultural value chains, and creating jobs while improving food and nutrition security.”

Regarding the loan, the global lender noted that agriculture remains Nigeria’s largest employer but continues to underperform due to structural constraints.

It stated, “Agriculture remains Nigeria’s largest source of employment, yet low productivity, limited access to quality inputs, climate shocks, and weak market linkages for smallholder farmers have constrained its potential to generate better jobs and affordable food.”

The bank noted that many smallholder farmers are still trapped in subsistence farming, while food and nutrition insecurity persists across the country.

According to the statement, the AGROW project will support agribusinesses that source produce from smallholder farmers through a results-based matching grant facility.

The initiative will focus on aggregation, post-harvest handling, agro-processing, and improved market access, with priority placed on key crops, including rice, maize, cassava, and soybeans.

The statement added that the programme would strengthen agricultural research and extension services, expand access to improved and climate-resilient seeds, and establish a national digital farm and farmer registry.

It said farmers would also benefit from digital advisory services, including localised weather and climate information, to improve productivity and resilience.

The bank further disclosed that the project would improve seed and fertiliser regulatory systems, boost early-generation seed supply, and enhance private sector participation in the production of high-quality inputs.

It stated, “In addition, the project will improve seed and fertiliser regulatory systems, expand early-generation seed supply, enhance private sector production of high-quality seed and farmers’ access to quality fertiliser, and promote transparent and responsible land-based investments.”

The lender added that the programme would be supported by strong coordination, monitoring, and citizen engagement mechanisms, with an emphasis on the inclusion of women and youth.

Speaking on the initiative, the World Bank Country Director for Nigeria, Mathew Verghis, described the project as a major step toward transforming 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, “This project is expected to benefit up to one million smallholder farmers, mobilise significant private investment, and increase yields across targeted crops. At the same time, it will help to ensure improved food and nutrition security and greater resilience to climate shocks among farmers in the participating states across Nigeria.”

The six-year project, scheduled to run from 2026 to 2032, is expected to attract an additional $220m in private agribusiness investment.

The bank said the initiative aligns with Nigeria’s priorities of boosting agricultural productivity, creating jobs, and enhancing value addition, while supporting broader efforts to transition smallholder farming into commercially viable agribusinesses.

Nigeria often relies on concessional multilateral financing to support infrastructure and development programmes.

Data from the Debt Management Office shows that Nigeria’s exposure to the World Bank Group stood at $19.54bn as of September 30, 2025, comprising $18.18bn from the International Development Association and $1.36bn from the International Bank for Reconstruction and Development.

This represents about 40.34 per cent of Nigeria’s total external debt stock of $48.46bn, showing the World Bank’s dominant position among the country’s creditors.