- The World Bank has approved a $500 million credit facility for Nigeria’s agricultural sector
- The AGROW project aims to improve productivity, create jobs, and strengthen value chains
- Key focus areas include improved seeds, digital tools, and private sector participation
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology, and macroeconomic trends in Nigeria.
The World Bank has approved a $500 million credit facility for Nigeria to support agricultural development under a new programme aimed at improving productivity, strengthening value chains, and enhancing food security.
The funding, provided through the International Development Association, will finance the Nigeria Sustainable Agricultural Value Chains for Growth Project (AGROW), according to a statement published by the lender on Thursday, PUNCH reported.
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Project targets farmers, food security
The bank said the initiative is designed to boost smallholder farmers’ productivity, improve market linkages, and create jobs across the country.
The loan, approved on March 30, 2026, is expected to address longstanding structural challenges affecting Nigeria’s agricultural sector.
Sector faces structural challenges
According to the World Bank, agriculture remains Nigeria’s largest source of employment but continues to underperform due to low productivity, limited access to quality inputs, climate-related shocks, and weak market connections.
The bank noted that many smallholder farmers are still engaged in subsistence farming, contributing to persistent food and nutrition insecurity in the country.
Focus on value chains and agribusiness
Under the AGROW project, agribusinesses sourcing produce from smallholder farmers will receive support through a results-based matching grant facility.
The programme will prioritise key crops such as rice, maize, cassava, and soybeans, with interventions focused on aggregation, post-harvest handling, agro-processing, and improved market access.
It will also strengthen agricultural research and extension services, expand access to climate-resilient seeds, and establish a national digital farm and farmer registry.
Farmers are expected to benefit from digital advisory tools, including localised weather and climate information to improve productivity and resilience.
Input systems, private sector participation
The World Bank said the project would improve seed and fertiliser regulatory systems, boost early-generation seed supply, and encourage private sector participation in producing high-quality inputs.
It added that the programme would promote transparent and responsible land-based investments while ensuring effective coordination, monitoring, and citizen engagement.
The initiative will also emphasise inclusion, particularly for women and youth in agriculture.
World Bank highlights expected impact
Speaking on the project, the World Bank Country Director for Nigeria, Mathew Verghis, described the initiative as a major step toward transforming the sector, The Cable reported.
He said the project is expected to benefit up to one million smallholder farmers, attract private investment, and improve yields across targeted crops.
“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.
Source: Twitter
Timeline and financing context
The six-year programme, scheduled to run from 2026 to 2032, is projected to mobilise an additional $220 million in private agribusiness investment.
The World Bank noted that the initiative aligns with Nigeria’s goals of boosting agricultural productivity, creating jobs, and transitioning smallholder farming into commercially viable agribusinesses.
Nigeria continues to rely on concessional financing from multilateral institutions to support development projects.
Data from the Debt Management Office shows that the country’s exposure to the World Bank Group stood at $19.54 billion as of September 30, 2025. This includes $18.18 billion from the International Development Association and $1.36 billion from the International Bank for Reconstruction and Development, representing about 40.34 per cent of Nigeria’s total external debt stock of $48.46 billion.
FG opens portal for Nigerians to apply for FarmerMoni
Legit.ng earlier reported that the federal government is providing interest-free loans to 22,000 eligible farmers for improved agricultural productivity.
Farmers can secure up to N300,000 without collateral through FarmerMoni, which promotes economic stability in rural areas of the country.
The Renewed Hope GEEP 3.0 aimed to enhance food security and reduce poverty through financial inclusion and support for agriculture.
Source: Legit.ng