The African Development Bank Group has approved a $200 million loan to strengthen climate-smart and technology-driven agriculture in Nigeria, in a move aimed at boosting food security and enhancing productivity across key value chains.
The financing will support the second phase of the Federal Government’s National Agricultural Growth Scheme – Agro-Pocket (NAGS-AP), expanding farmers’ access to quality inputs, modern technology and data-driven farming practices nationwide.
Structured as Sector Budget Support, the four-year project is scheduled to commence in March 2026. It builds on earlier interventions under the Bank’s African Emergency Food Production Facility and is designed to accelerate the adoption of climate-resilient agricultural systems.
Scaling Impact Through Technology
According to the Bank, the second phase draws lessons from the initial rollout of NAGS-AP to deepen impact at scale.
Abdul Kamara, Director General of the AfDB for Nigeria, said the funding would help expand priority investments that enhance productivity and value addition.
“By expanding access to quality inputs, digital tools and climate-smart technologies, we are supporting farmers to improve productivity and resilience,” Kamara said. “This programme will continue to play a critical role in reducing food imports, boosting local production and advancing inclusive growth across the country.”
The Bank added that the initiative aligns with five key pillars of Nigeria’s National Agricultural Technology and Innovation Policy, focusing on improved input access, stronger value chains, revitalised extension services, digital agriculture and strengthened data systems.
Building on Earlier Gains
Phase I of the National Agricultural Growth Scheme delivered measurable outcomes through an ICT-based input distribution system that improved transparency and efficiency.
More than 600 agro-dealers supplied certified seeds, fertilisers and crop protection products to farmers nationwide. During the 2023/2024 dry season, approximately 118,000 hectares of wheat were cultivated under the scheme. National wheat output subsequently tripled to an estimated 500,000 metric tons in 2024.
An estimated 650,000 smallholder farmers growing wheat, rice, cassava, maize, sorghum and millet benefited from the first phase—laying the groundwork for an expanded, climate-focused second phase.
Addressing Structural Constraints
Agriculture remains a cornerstone of Nigeria’s economy, employing about 38 per cent of the workforce and contributing roughly one-quarter of gross domestic product. Yet persistent structural challenges continue to limit its full potential.
Constraints such as limited access to improved seeds and fertilisers, weak land tenure systems, low irrigation coverage, climate stress and soil degradation have suppressed yields and discouraged long-term investment.
The newly approved project seeks to address these barriers, targeting a fivefold increase in wheat production and a 20 per cent rise in rice output.
The $200 million facility follows another major intervention in November 2025, when the AfDB approved a $500 million loan to Nigeria to finance the second phase of the Economic Governance and Energy Transition Support Programme.
Together, these interventions underscore the Bank’s continued commitment to strengthening Nigeria’s economic resilience—placing climate-smart agriculture at the centre of efforts to achieve food self-sufficiency and inclusive growth.