The World Bank has approved a $500 million International Development Association (IDA) credit to support Nigeria’s agricultural sector through the Nigeria Sustainable Agricultural Value-Chains for Growth project, known as AGROW. The programme is designed to boost productivity, strengthen value chains, and improve food security, with a particular focus on smallholder farmers.
According to the World Bank, agriculture remains Nigeria’s largest employer but continues to underperform due to structural challenges. These include low productivity, limited access to quality inputs, climate shocks, and weak market linkages. Many smallholder farmers remain trapped in subsistence farming, while food and nutrition insecurity persists nationwide.
The AGROW project aims to address these issues by supporting agribusinesses that source produce from smallholder farmers. It will provide results-based matching grants to strengthen aggregation, post-harvest handling, agro-processing, and market access. Priority crops include rice, maize, cassava, and soybeans.
The initiative will focus on several areas critical to agricultural transformation:
– Research and Extension Services: Strengthening agricultural research and extension to improve farmer knowledge and practices.
– Climate-Resilient Inputs: Expanding access to improved seeds and climate-resilient varieties.
– Digital Tools: Establishing a national digital farm and farmer registry, alongside digital advisory services that provide localized weather and climate information.
– Regulatory Systems: Improving seed and fertiliser regulation, expanding early-generation seed supply, and encouraging private sector participation in producing high-quality inputs.
– Land-Based Investments: Promoting transparent and responsible land investments to ensure sustainability.
The programme will also emphasize inclusion, with mechanisms to ensure women and youth benefit from the interventions. Strong coordination, monitoring, and citizen engagement frameworks will be built into the project.
World Bank Country Director for Nigeria, Mathew Verghis, described AGROW as a transformative step for the sector. He said the project is expected to benefit up to one million smallholder farmers, mobilise significant private investment, and increase yields across targeted crops.
Verghis added that the initiative will strengthen food and nutrition security while enhancing resilience to climate shocks. The six-year programme, running from 2026 to 2032, is projected to attract an additional $220 million in private agribusiness investment.
The World Bank noted that the project aligns with Nigeria’s priorities of boosting agricultural productivity, creating jobs, and enhancing value addition. It supports broader efforts to transition smallholder farming into commercially viable agribusinesses.
Nigeria has long relied on concessional multilateral financing to support infrastructure and development programmes. The Debt Management Office reported that Nigeria’s exposure to the World Bank Group stood at $19.54 billion as of September 2025. Of this, $18.18 billion was from the IDA and $1.36 billion from the International Bank for Reconstruction and Development. This represents about 40 percent of Nigeria’s total external debt stock of $48.46 billion, underscoring the World Bank’s dominant role among Nigeria’s creditors.
Agriculture is central to Nigeria’s economy, employing millions and contributing significantly to GDP. Yet, productivity remains low, and the sector struggles to meet the food needs of a growing population. Climate change, poor infrastructure, and limited access to finance have compounded these challenges.
The AGROW project seeks to break this cycle by modernising farming practices, improving access to inputs, and linking farmers to markets. By focusing on value chains, the initiative aims to ensure that farmers not only produce more but also earn better incomes through stronger connections to agribusinesses and consumers.
The World Bank’s $500 million credit for Nigeria’s AGROW project represents a major investment in the country’s agricultural future. With its focus on smallholder farmers, climate resilience, and value chain development, the programme is expected to deliver long-term benefits for food security, job creation, and economic growth.
If successfully implemented, AGROW could mark a turning point in Nigeria’s agricultural sector, helping to transform subsistence farming into a driver of sustainable development and resilience.
