The World Bank has approved a $500 million International Development Association (IDA) credit to support Nigeria’s agricultural sector, aiming to strengthen smallholder farming, value chains, and national food security. The funding will underpin the Nigeria Sustainable Agricultural Value Chains for Growth Project (AGROW), which seeks to improve productivity, create jobs, and enhance market linkages across the country.
The loan, approved on March 30, 2026, comes amid persistent structural challenges in the sector. According to the World Bank, agriculture remains Nigeria’s largest employer but continues to underperform due to low productivity, limited access to quality inputs, climate shocks, and weak market connections for smallholder farmers. Many farmers are still confined to subsistence farming, while food and nutrition insecurity persists.
Under the AGROW initiative, support will target agribusinesses sourcing produce from smallholders through a results-based matching grant facility. Key project areas include crop aggregation, post-harvest handling, agro-processing, and enhanced market access, with priority given to staples such as rice, maize, cassava, and soybeans.
The project also aims to:
- Strengthen agricultural research and extension services.
- Expand access to improved, climate-resilient seeds.
- Establish a national digital farm and farmer registry.
- Provide digital advisory services, including localized weather and climate information.
- Improve seed and fertilizer regulatory systems and boost early-generation seed supply.
- Enhance private sector involvement in high-quality input production.
- Promote transparent, responsible land-based investments.
The program emphasizes inclusion, particularly for women and youth, and incorporates robust coordination, monitoring, and citizen engagement mechanisms.
Mathew Verghis 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 noted the project is expected to benefit up to one million smallholder farmers, attract $220 million in private agribusiness investment, and increase yields across targeted crops, while improving resilience to climate shocks.
Scheduled to run from 2026 to 2032, the six-year project aligns with Nigeria’s goals of boosting agricultural productivity, creating jobs, and supporting the transition of smallholder farming into commercially viable agribusinesses.
Nigeria frequently relies on concessional multilateral financing to support development initiatives. Data from the Debt Management Office shows that, as of September 30, 2025, the country’s exposure to the World Bank Group stood at $19.54 billion—comprising $18.18 billion from the IDA and $1.36 billion from the International Bank for Reconstruction and Development—representing roughly 40.34% of Nigeria’s total external debt of $48.46 billion.