World Bank Approves $500 Million Loan to Boost Nigeria’s Agriculture Sector
Nigeria’s agriculture sector is set for a major boost following the World Bank’s approval of a $500 million credit facility aimed at improving productivity, strengthening value chains, and enhancing food security. The funding, provided through the International Development Association (IDA), will support the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) Project.
According to the World Bank, the initiative is designed to tackle persistent challenges such as low productivity, climate-related shocks, and limited market access—issues that have continued to affect a sector that remains Nigeria’s largest employer. The programme will focus heavily on empowering smallholder farmers and integrating them more effectively into formal agricultural markets.
The AGROW project is expected to benefit up to one million smallholder farmers by linking them with agribusinesses and providing targeted support. Agribusinesses that source produce from local farmers will receive funding through a results-based matching grant system, with priority given to areas like post-harvest handling, agro-processing, and improved market access.
Key staple crops including rice, maize, cassava, and soybeans will be central to the intervention. The project will also introduce climate-resilient seeds, strengthen agricultural research systems, and roll out a national digital registry for farmers to improve transparency and planning. Farmers are also set to gain access to digital advisory tools, including localized weather updates to help improve yields.
Scheduled to run from 2026 to 2032, the six-year programme is expected to attract an additional $220 million in private investment, reinforcing its market-driven approach. The World Bank says the initiative aligns with Nigeria’s broader goal of transforming agriculture into a commercially viable sector capable of creating jobs, reducing food inflation, and improving overall food security.
source: nairametrics