By Awyetu Asabe Hope
The World Bank has approved a $500m International Development Association credit to support Nigeria’s agricultural sector under a new programme targeting smallholder farmers, value chain development, and food security.
The funding will finance the Nigeria Sustainable Agricultural Value Chains for Growth Project, also known as AGROW, a six-year initiative aimed at improving productivity, strengthening market linkages, and creating jobs nationwide.
In a statement obtained from its website on Thursday, the global lender said the project was designed to enhance smallholder farmers’ productivity, promote agribusiness growth, and improve 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 smallholder farmers’ productivity, strengthening agricultural value chains, and creating jobs while improving food and nutrition security,” the statement read.
The approval, dated March 30, 2026, confirms an earlier reported earlier in February.
The bank noted that despite being Nigeria’s largest employer, the agricultural sector continues to underperform due to 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 smallholder farmers have constrained its potential to generate better jobs and affordable food,” it stated.
It added that many smallholder farmers remain 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 key value chain activities, including aggregation, post-harvest handling, agro-processing, and improved market access, with priority crops such as rice, maize, cassava, and soybeans.
It also aims to 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 boost productivity and resilience.
The bank further disclosed that the project would enhance seed and fertiliser regulatory systems, increase early-generation seed supply, and encourage private sector participation in the production of high-quality inputs.
“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,” it stated.
The programme will also emphasise coordination, monitoring, and citizen engagement, with a focus 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 significant 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 that the project is expected to benefit up to one million smallholder farmers, mobilise substantial 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 $220m in private agribusiness investment.
The initiative aligns with Nigeria’s priorities of boosting agricultural productivity, creating jobs, and enhancing value addition, while supporting the transition from subsistence farming to commercially viable agribusinesses.
Nigeria has continued to rely on concessional multilateral financing to fund key development projects.
Data from the Debt Management Office shows that the country’s exposure to the World Bank Group stood at $19.54bn as of September 30, 2025, accounting for 40.34 per cent of its total external debt stock of $48.46bn.