The World Bank is scheduled to approve a $500 million concessional loan for Nigeria on March 30, 2026, to enhance agricultural productivity and strengthen key value chains in selected states. The funding, provided as an International Development Association (IDA) credit, will be implemented by the Federal Ministry of Agriculture and Food Security in partnership with participating state governments.
The project aims to integrate smallholder farmers into competitive value chains, modernize their production systems, and improve policy frameworks to attract private investment in input markets. A fourth component will focus on project coordination and monitoring. The total operation cost and total financing are both estimated at $500 million, with the Federal Republic of Nigeria as the borrower.
This financing arrives as Nigeria’s external debt continues to rise. Data shows IDA exposure to Nigeria grew by $1.9 billion in one year, reaching $18.7 billion by the end of 2025. As of June 30, 2025, Nigeria’s total external debt stood at $46.98 billion, with the World Bank Group accounting for $19.39 billion of that sum.
The World Bank identifies creating better jobs and addressing food and nutrition insecurity as critical development challenges for Nigeria. The new facility is designed to tackle these issues by boosting smallholder productivity and targeting specific agricultural value chains. By supporting both on-farm modernization and the enabling environment for private sector involvement, the project seeks to create a more resilient and productive agricultural sector.
The approval later this year will mark a significant infusion of grant-based funding into Nigeria’s agricultural sector, which remains a cornerstone of the economy but faces persistent productivity gaps. Effective implementation across federal and state levels will be crucial to achieving the project’s goals of enhancing food security and livelihoods amid a challenging fiscal landscape.
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