The World Bank has approved a $500 million credit facility for Nigeria through the International Development Association (IDA) to support the implementation of the Nigeria Sustainable Agricultural Value Chains for Growth (AGROW) project.
In a statement published on its website, the global lender said the initiative is aimed at boosting the productivity of smallholder farmers, strengthening agricultural value chains, and creating employment opportunities across the country.
The bank noted that although agriculture remains Nigeria’s largest source of employment, the sector continues to face significant challenges, including low productivity, poor access to quality inputs, climate-related shocks, and weak market linkages.
“Many smallholder farmers remain trapped in subsistence farming, while food and nutrition insecurity continues to affect millions of Nigerians,” the statement said.
According to the bank, the AGROW project will provide targeted support to agribusinesses willing to source produce from smallholder farmers through a results-based matching grant scheme.
The intervention will focus on key areas such as aggregation, post-harvest handling, agro-processing, and improved market access across priority value chains, including rice, maize, cassava, and soybeans.
The project will also strengthen agricultural research and extension services, expand access to improved and climate-resilient seeds, and establish a national digital farm and farmer registry.
Farmers are expected to benefit from digital advisory services, including localised weather and climate information, to enhance productivity and resilience.
Additionally, the initiative will improve seed and fertiliser regulatory systems, expand early-generation seed supply, and encourage greater private sector participation in the production of high-quality agricultural inputs. It will also promote transparent and responsible land-based investments.
The World Bank further stated that strong coordination, monitoring, and citizen engagement mechanisms will be put in place to ensure accountability and inclusiveness, particularly for women and youth.
Commenting on the development, the World Bank Country Director for Nigeria, Mathew Verghis, described the project as a transformative step for the country’s agricultural 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,” Verghis said.
He added that the project is expected to benefit up to one million smallholder farmers, mobilise significant private investment, and increase yields across targeted crops.
The six-year programme, scheduled to run from 2026 to 2032, is also projected to attract an additional $220 million in private agribusiness investment while improving food and nutrition security and enhancing farmers’ resilience to climate shocks.
