World Bank approves $500m credit to boost Nigeria’s agriculture

The World Bank has approved a $500 million International Development Association (IDA) credit to support Nigeria’s agricultural sector. 

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.

According to 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, approved on March 30, 2026, comes as agriculture remains Nigeria’s largest employer but continues to face structural challenges, including low productivity, limited access to quality inputs, climate shocks, and weak market linkages.

According to the bank, AGROW will support agribusinesses sourcing from smallholder farmers through a results-based matching grant facility. Key areas of focus include aggregation, post-harvest handling, agro-processing, and improved market access, with priority crops including rice, maize, cassava, and soybeans.

The project will also strengthen agricultural research and extension services, expand access to climate-resilient seeds, and establish a national digital farm and farmer registry. Farmers will benefit from digital advisory services, including localised weather and climate information.

Commenting on the initiative, Mathew Verghis said, “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. This project is expected to benefit up to one million smallholder farmers, mobilise significant private investment, and increase yields across targeted crops.”

Scheduled to run from 2026 to 2032, the project is expected to attract an additional $220 million in private agribusiness investment, supporting Nigeria’s goals of boosting agricultural productivity, creating jobs, and transforming smallholder farming into commercially viable agribusinesses.

The World Bank noted that the initiative will improve seed and fertiliser regulatory systems, expand early-generation seed supply, enhance private sector participation, and promote transparent land-based investments, with a particular focus on inclusion of women and youth.

This credit adds to Nigeria’s existing World Bank exposure, which stood at $19.54 billion as of September 2025, representing 40.34 per cent of the country’s total external debt stock.