The World Bank has approved a US$500 million concessional credit for Nigeria to support a new agricultural programme aimed at boosting smallholder farmers, strengthening value chains and improving food security in Africa’s most populous country, the lender said.
The financing, approved on March 30, will go toward the Nigeria Sustainable Agricultural Value Chains for Growth Project (AGROW), a six-year initiative designed to raise farm productivity, improve market access and attract private investment into the country’s underperforming agricultural sector.
In a statement published on its website, the World Bank said the programme is intended to increase the productivity of smallholder farmers, create jobs and improve food and nutrition security while helping to modernise key parts of Nigeria’s agricultural system.
“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 lender said.
Despite employing millions of Nigerians, the sector has struggled for years with poor yields, post-harvest losses, weak infrastructure and limited access to finance and improved farm inputs. Many farmers continue to operate at subsistence level, leaving the country vulnerable to rising food prices and recurring food insecurity.
Under the AGROW programme, the World Bank said agribusinesses that source produce from smallholder farmers will receive support through a results-based matching grant facility, with a focus on improving aggregation, post-harvest handling, agro-processing and market access.
The initiative will prioritise major staples including rice, maize, cassava and soybeans, crops that are central to Nigeria’s food supply and rural livelihoods.
The project will also support improvements in agricultural research and extension services, expand access to improved and climate-resilient seeds, and establish a national digital farm and farmer registry aimed at improving planning and targeted support.
Farmers are also expected to benefit from digital advisory tools, including localised weather and climate information intended to help them adapt to increasingly volatile conditions linked to climate change.
In addition, the programme will seek to strengthen seed and fertiliser regulatory systems, improve the supply of early-generation seed, and encourage greater private sector participation in the production and distribution of high-quality farm inputs.
The World Bank said the initiative would also promote transparent and responsible land-based investments, while placing strong emphasis on women and youth inclusion, coordination, citizen engagement and project monitoring.
World Bank Country Director for Nigeria Mathew Verghis described the programme as a major intervention for the country’s farm 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.
According to the bank, the project is expected to benefit up to one million smallholder farmers and attract an additional $220 million in private agribusiness investment over its lifespan from 2026 to 2032.
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The approval comes as Nigeria continues to face high food inflation and persistent pressure on household incomes, with policymakers under growing pressure to improve domestic food production and reduce import dependence.
Agriculture has increasingly become a focus of government and donor-backed interventions as Nigeria seeks to diversify its economy away from oil and create jobs for its rapidly growing population.
The World Bank said the project aligns with Nigeria’s broader goals of improving agricultural productivity, supporting job creation and helping to transform smallholder farming into more commercially viable agribusinesses.
Nigeria remains one of the largest borrowers from the World Bank, relying heavily on concessional multilateral financing to fund development and social programmes.
According to data from the Debt Management Office, Nigeria’s total exposure to the World Bank Group stood at US$19.54 billion as of September 30, 2025, accounting for about 40.34 percent of the country’s US$48.46 billion external debt stock.
The new credit reinforces the World Bank’s central role in financing Nigeria’s development agenda, even as concerns continue over the country’s growing debt burden and the need for stronger implementation of donor-backed reforms.
