The World Bank has approved a $500 million credit facility for Nigeria under the International Development Association (IDA), in a move aimed at boosting the country’s struggling agricultural sector through a new initiative tagged the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) project.
In a statement published on its website, the Washington-based lender said the intervention is designed to improve productivity among smallholder farmers, strengthen agricultural value chains, and expand job opportunities across the sector.
Despite agriculture being Nigeria’s largest employer, the bank noted that millions of farmers remain trapped in subsistence farming due to persistent structural challenges, including low productivity, poor access to quality inputs, climate shocks, and weak market linkages.
“Agriculture remains Nigeria’s largest source of employment, yet low productivity, limited access to quality inputs, climate shocks, and weak market linkages for smallholder farmers have constrained its potential to generate better jobs and affordable food,” the statement said.
The AGROW project, expected to run for six years from 2026 to 2032, will deploy a results-based matching grant scheme to support agribusinesses that source produce directly from smallholder farmers.
According to the bank, the programme will prioritise key value chains such as rice, maize, cassava, and soybeans, with interventions targeting aggregation, post-harvest handling, agro-processing, and improved access to markets.
The initiative will also focus on strengthening agricultural research systems, expanding access to improved and climate-resilient seeds, and establishing a national digital registry for farmers and farmlands.
Farmers are further expected to benefit from digital advisory services, including localised weather and climate intelligence to enhance productivity and resilience.
In addition, the project will seek to reform seed and fertiliser regulatory frameworks, boost early-generation seed supply, and deepen private sector participation in the production of high-quality agricultural inputs.
The bank said it would also promote transparent land-based investments while deploying monitoring and citizen engagement mechanisms to ensure accountability, with a specific focus on inclusion for women and youth.
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Speaking on the development, Mathew Verghis described the programme as a “transformative step” for Nigeria’s agricultural sector.
“AGROW is a transformative step for Nigeria’s agriculture, empowering smallholder farmers, unlocking private sector–led growth, and strengthening food security in a sustainable way,” Verghis said.
He added that the project is expected to directly benefit up to one million smallholder farmers, while mobilising an estimated $220 million in additional private investment and increasing yields across targeted crops.
However, the announcement comes amid longstanding concerns over the implementation of previous World Bank-funded agricultural programmes in Nigeria, with critics often pointing to weak oversight, corruption risks, and limited impact at the grassroots level.
