Nigeria Secures $500m World Bank Support for Farmers and Agro Value Chains

The World Bank has approved a 500 million dollar credit facility for Nigeria to strengthen agricultural value chains, support smallholder farmers, and improve food and nutrition security across the country.

The funding, provided through the International Development Association, will go into a new programme known as the Nigeria Sustainable Agricultural Value Chains for Growth Project, or AGROW. 

The project is designed to raise farm productivity, improve access to markets, strengthen agribusiness linkages, and create jobs in the sector.

According to the World Bank, agriculture remains the biggest source of employment in Nigeria, but the sector still faces major challenges. These include low productivity, poor access to quality inputs, climate-related shocks, and weak market connections for smallholder farmers. 

The bank said these problems have continued to limit the sector’s ability to provide affordable food, better incomes, and stronger economic opportunities.

Under the AGROW project, agribusinesses that buy produce from smallholder farmers will receive support through a results-based matching grant system. The programme will focus on key areas such as aggregation, post-harvest handling, agro processing, and improved market access. Priority crops under the scheme include rice, maize, cassava, and soybeans.

The project will also support agricultural research and extension services, expand access to improved and climate-resilient seeds, and establish a national digital registry for farms and farmers. 

In addition, farmers are expected to benefit from digital advisory tools, including local weather and climate information, to improve productivity and resilience.

The World Bank said the initiative will further improve seed and fertiliser regulation, increase early-generation seed supply, encourage private-sector investment in high-quality inputs, and promote more transparent land-based investments. It added that the project will include monitoring, coordination, and citizen engagement measures, with special attention to women and young people.

Speaking on the approval, the World Bank’s Country Director for Nigeria, Mathew Verghis, described AGROW as an important step towards transforming agriculture in the country. He said the programme is expected to benefit up to one million smallholder farmers, attract significant private investment, increase crop yields, and improve resilience to climate shocks in participating states.

The project will run for six years, from 2026 to 2032, and is expected to mobilise an additional 220 million dollars in private agribusiness investment.

The bank said the programme fits into Nigeria’s broader goals of improving agricultural productivity, creating jobs, increasing value addition, and helping smallholder farming move closer to commercially viable agribusiness.

Nigeria has continued to rely on concessional financing from multilateral institutions to support development programmes. 

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 dollars, representing about 40.34 percent of its total external debt stock of 48.46 billion dollars.