ABUJA, Nigeria (VOICE OF NAIJA)- The World Bank has approved a $500m International Development Association credit to strengthen Nigeria’s agricultural sector through a new programme focused on smallholder farmers, value chains, and food security.
The funding will be used for the Nigeria Sustainable Agricultural Value Chains for Growth Project, also known as AGROW, which is designed to enhance productivity, improve market connections, and generate employment nationwide.
A 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.”
The loan approval date was given as March 30, 2026.
On the facility, the global lender noted that although agriculture is Nigeria’s largest employer, it continues to perform below potential due to structural challenges.
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 added that many smallholder farmers remain engaged in subsistence farming, while food and nutrition insecurity continues across the country.
According to the statement, the AGROW project will support agribusinesses that procure produce from smallholder farmers through a results-based matching grant system.
The programme will prioritise aggregation, post-harvest management, agro-processing, and improved access to markets, with key focus on crops such as rice, maize, cassava, and soybeans.
It further noted that the initiative will enhance agricultural research and extension services, widen access to improved and climate-resilient seeds, and create a national digital farm and farmer registry.
Farmers are also expected to benefit from digital advisory services, including location-specific weather and climate information, to boost productivity and resilience.
The bank also disclosed that the project will strengthen seed and fertiliser regulatory frameworks, increase early-generation seed supply, and promote greater private sector involvement in producing 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 will be backed by strong coordination, monitoring, and citizen engagement systems, with a focus on including women and youth.
Speaking on the initiative, the World Bank Country Director for Nigeria, Mathew Verghis, described the project as a significant milestone in 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 initiative, scheduled to run from 2026 to 2032, is projected to attract an additional $220m in private agribusiness investment.
The bank noted that the programme aligns with Nigeria’s goals of improving agricultural productivity, creating jobs, and increasing value addition, while also supporting efforts to transition smallholder farming into commercially viable agribusiness ventures.
Nigeria frequently relies on concessional multilateral funding to support infrastructure and development initiatives.
Data from the Debt Management Office indicates 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 accounts for about 40.34 per cent of Nigeria’s total external debt stock of $48.46bn, highlighting the World Bank’s dominant role among the country’s creditors.