The World Bank has approved a $500 million International Development Association credit to strengthen Nigeria’s agricultural sector through a new six-year initiative focused on smallholder farmers, value chain development, and food security.
The funding will finance the Nigeria Sustainable Agricultural Value Chains for Growth Project, commonly referred to as AGROW. Approved on March 30, the programme targets increased crop productivity, stronger market connections, and rural job creation. According to the lending institution, agriculture remains Nigeria’s largest source of employment but continues to face structural bottlenecks, including limited access to quality farm inputs, climate vulnerabilities, and underdeveloped supply chains.
Under the AGROW framework, agribusinesses that source directly from small-scale producers will receive results-based matching grants. The initiative prioritises staple crops such as rice, maize, cassava, and soybeans, with capital directed toward post-harvest handling, agro-processing, and producer aggregation. Additional funding will expand digital advisory services, establish a national farm registry, and modernise regulatory frameworks for seeds and fertilisers. The project also incorporates climate-resilient inputs and mandates the economic inclusion of women and youth across targeted agricultural corridors.
World Bank Country Director for Nigeria, Mathew Verghis, described the financing as a catalyst for transitioning subsistence operations into commercial agribusiness models. He noted that the programme is designed to support approximately one million smallholder farmers and attract $220 million in complementary private investment by improving crop yields and stabilising local food supply systems. Implementation will run from 2026 to 2032, with built-in performance monitoring and community oversight mechanisms.
Nigeria has consistently utilised concessional multilateral financing to fund infrastructure and sectoral development initiatives. Records from the national Debt Management Office indicate that the country’s total exposure to the World Bank Group reached $19.54 billion as of September 30, 2025. This figure represents roughly 40 percent of Nigeria’s $48.46 billion external debt portfolio, highlighting the institution’s central position in national development financing.
As agricultural demand intensifies across the region, the AGROW project seeks to align domestic production targets with sustainable, market-driven farming systems. Federal implementing agencies will release operational guidelines and phased disbursement schedules ahead of project commencement.
