The World Bank has granted a $500 million International Development Association (IDA) credit to strengthen Nigeria’s agricultural sector through a new programme targeting smallholder farmers, value chains, and food security.
The funding will support the Nigeria Sustainable Agricultural Value Chains for Growth Project, known as AGROW. The initiative aims to increase productivity, strengthen market linkages, and create employment across the country.
A statement from the World Bank website on Thursday explained, “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 approval date for the loan was March 30, 2026, according to The PUNCH’s earlier report in February 2026.
The global lender highlighted that agriculture remains Nigeria’s largest employer but faces 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,” the statement noted.
Many smallholder farmers still practice subsistence farming, and food and nutrition insecurity continues to affect communities nationwide.
The AGROW project will provide support to agribusinesses sourcing produce from smallholder farmers through a results-based matching grant facility. The programme will focus on aggregation, post-harvest handling, agro-processing, and improved market access, prioritising key crops such as rice, maize, cassava, and soybeans.
The project will also enhance agricultural research and extension services, expand access to improved and climate-resilient seeds, and establish a national digital farm and farmer registry. Farmers will receive digital advisory services, including localised weather and climate information, to boost productivity and resilience.
“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,” the statement added.
Mathew Verghis, World Bank Country Director for Nigeria, described AGROW as “a transformative step for Nigeria’s agriculture—empowering smallholder farmers, unlocking private sector–led growth, and strengthening food security in a sustainable way.”
He further said, “This project is expected to benefit up to one million smallholder farmers, mobilise significant private investment, and increase yields across targeted crops. At the same time, it will help to ensure improved food and nutrition security and greater resilience to climate shocks among farmers in the participating states across Nigeria.”
The six-year project, set to run from 2026 to 2032, is expected to attract an additional $220 million in private agribusiness investment. The programme aligns with Nigeria’s priorities of boosting productivity, creating jobs, and promoting value addition, while helping smallholder farming transition into commercially viable agribusinesses.
According to the Debt Management Office, Nigeria’s exposure to the World Bank Group stood at $19.54 billion as of September 30, 2025, representing about 40.34 per cent of the country’s total external debt stock of $48.46 billion.
