The World Bank has approved a five-hundred-million-dollar credit through the International Development Association to strengthen Nigeria’s agricultural sector under a new programme focused on 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 is designed to boost productivity, improve market connections, and create employment opportunities across the country.
According to a statement from the World Bank, the programme aims to raise the productivity of smallholder farmers, strengthen agricultural value chains, and improve food and nutrition security while generating jobs.
The project, approved on March 30, 2026, comes at a time when agriculture remains Nigeria’s largest source of employment but continues to face challenges. These challenges include low productivity, limited access to quality inputs, climate-related shocks, and weak market access for farmers.
The bank noted that many smallholder farmers are still engaged in subsistence farming, while food insecurity remains a concern nationwide.
Under the AGROW initiative, agribusinesses that source produce from smallholder farmers will receive support through a results-based matching grant system. The programme will focus on activities such as aggregation, post-harvest management, agro processing, and improved access to markets. Key crops targeted include rice, maize, cassava, and soybeans.
The project will also strengthen agricultural research and extension services, improve access to better and climate-resilient seeds, and create a national digital registry for farms and farmers.
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Farmers are expected to benefit from digital advisory services, including weather and climate information tailored to local conditions to enhance productivity and resilience.
In addition, the programme will improve regulations for seeds and fertilisers, expand early generation seed supply, and encourage private sector involvement in producing quality agricultural inputs.
The World Bank further stated that the project will promote transparency in land-based investments and ensure proper coordination, monitoring, and citizen engagement, with a strong focus on including women and young people.
Speaking on the initiative, the World Bank Country Director for Nigeria, Mathew Verghis, described the project as a major step toward transforming agriculture in the country. He said the programme would empower smallholder farmers, attract private sector investment, and sustainably strengthen food security.
He added that the initiative is expected to benefit up to one million farmers, increase crop yields, and improve resilience against climate challenges in participating states.
The project will run for six years, from 2026 to 2032, and is projected to attract an additional two hundred and twenty million dollars in private agribusiness investment.
The World Bank noted that the initiative aligns with Nigeria’s goals of improving agricultural productivity, creating jobs, and transitioning smallholder farming into more commercially viable agribusiness ventures.
Nigeria continues to rely on concessional funding from multilateral institutions for development programmes. Data from the Debt Management Office shows that the country’s exposure to the World Bank Group stood at nineteen point five four billion dollars as of September 30, 2025, representing a significant share of its external debt.
