The World Bank has approved a $500 million credit facility to boost Nigeria’s agricultural sector, targeting small holder 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, also known as AGROW.
According to a statement released on Thursday, the initiative aims to improve productivity, strengthen market linkages, create jobs, and enhance food and nutrition security across the country.
“The World Bank has approved a $500m International Development Association credit for the Nigeria Sustainable Agricultural Value Chains for Growth Project, aimed at increasing small holder farmers’ productivity, strengthening agricultural value chains, and creating jobs while improving food and nutrition security,” the statement read.
The loan approval date was listed as March 30, 2026.
Sector challenges
The global lender noted that agriculture remains Nigeria’s largest employer but continues to face major structural challenges.
“Agriculture remains Nigeria’s largest source of employment, yet low productivity, limited access to quality inputs, climate shocks, and weak market linkages for small holder farmers have constrained its potential,” the bank stated.
It added that many farmers remain trapped in subsistence agriculture, contributing to persistent food and nutrition insecurity.
Project focus
The AGROW programme will support agribusinesses sourcing produce from small holder farmers through a results-based matching grant system.
Key focus areas include aggregation, post-harvest handling, agro-processing, and improved market access, particularly for crops such as rice, maize, cassava, and soybeans.
The initiative will also:
- Strengthen agricultural research and extension services
- Expand access to improved and climate-resilient seeds
- Establish a national digital farm and farmer registry
- Provide digital advisory services, including weather and climate updates
Input systems and private sector role
The project will improve seed and fertiliser regulatory systems, expand early-generation seed supply, and enhance private sector participation in producing high-quality agricultural inputs.
It will also promote transparent and responsible land-based investments while ensuring stronger monitoring, coordination, and citizen engagement.
Special emphasis will be placed on the inclusion of women and youth in agricultural development.
Expected impact
Speaking on the initiative, the World Bank Country Director for Nigeria, Mathew Verghis, described the project as transformative.
“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, increase yields, and improve resilience to climate shocks.
Timeline and financing context
The six-year project will run from 2026 to 2032 and is projected to attract an additional $220 million in private agribusiness investment.
The initiative aligns with Nigeria’s broader goals of boosting productivity, creating jobs, and transitioning small holder farming into commercially viable agribusinesses.
According to data from the Debt Management Office, Nigeria’s exposure to the World Bank Group stood at $19.54 billion as of September 30, 2025.
This includes $18.18 billion from the International Development Association and $1.36 billion from the International Bank for Reconstruction and Development, accounting for about 40.34 per cent of the country’s total external debt stock of $48.46 billion.
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