The World Bank has approved a 500 million dollar credit facility for Nigeria to support a new agricultural initiative focused on smallholder farmers, food security, and value chain development.
The funding, provided through the International Development Association, will finance the Nigeria Sustainable Agricultural Value Chains for Growth Project, known as AGROW. The programme is designed to raise farm productivity, improve access to markets, and generate employment opportunities across the country.
According to a statement released on Thursday, the project seeks to strengthen agricultural systems by helping farmers move beyond subsistence practices while improving food availability and nutrition nationwide. The approval for the loan was dated March 30, 2026.
Despite being the largest source of employment in Nigeria, agriculture continues to face major challenges. These include low productivity, poor access to quality inputs, climate related shocks, and weak connections between farmers and markets. As a result, many rural farmers remain trapped in low income activities.
Under the AGROW initiative, agribusinesses that source produce from smallholder farmers will receive support through a results based matching grant scheme. The project will prioritise key crops such as rice, maize, cassava, and soybeans, while also improving aggregation systems, post harvest handling, and agro processing.
The programme will also focus on strengthening research and extension services, increasing access to improved and climate resilient seeds, and building a national digital registry for farmers and farmland. In addition, farmers will receive digital advisory services, including weather updates tailored to local conditions.
Efforts will be made to reform seed and fertiliser regulatory frameworks, expand the supply of early generation seeds, and encourage greater private sector involvement in producing high quality inputs. The initiative also aims to promote transparent land investments and improve farmers’ access to fertilisers.
Strong coordination and monitoring systems will be put in place, alongside mechanisms for citizen engagement. The project will place particular emphasis on supporting women and young people in agriculture.
The World Bank Country Director for Nigeria, Mathew Verghis, described the initiative as a significant move towards transforming the sector. He noted that the programme is expected to benefit up to one million smallholder farmers, boost yields, and attract private investment.
The project will run for six years, from 2026 to 2032, and is projected to draw an additional 220 million dollar investment from agribusinesses.
The initiative aligns with Nigeria’s broader goals of increasing agricultural output, creating jobs, and promoting value addition. It also supports efforts to transition small scale farming into commercially viable enterprises.
Nigeria continues to rely on concessional financing from multilateral institutions to fund development projects. Data from the Debt Management Office shows that the country owed the World Bank Group 19.54 billion dollars as of September 30, 2025. This included 18.18 billion dollars from the International Development Association and 1.36 billion dollars from the International Bank for Reconstruction and Development.
The figures account for over 40 percent of Nigeria’s total external debt stock of 48.46 billion dollars, highlighting the World Bank’s position as one of the country’s largest creditors.
