In a new initiative aimed at smallholder farmers, value chains, and food security, the World Bank has authorized a $500 million International Development Association credit to strengthen Nigeria’s agricultural industry.
The Nigeria Sustainable Agricultural Value-Chains for Growth initiative, or AGROW, which seeks to boost market connections, increase productivity, and generate employment nationwide, will receive the financing.
“The World Bank has approved a $500 million International Development Association credit for the Nigeria Sustainable Agricultural Value-Chains for Growth Project, aimed at increasing smallholder farmers’ productivity, strengthening agricultural value chains, and creating jobs while improving food and nutrition security,” according to a press release taken from the World Bank’s website on Thursday.
As previously reported in February 2026, the loan project’s approval date was revealed to be March 30, 2026. Regarding the loan, the international lender pointed out that although agriculture is still Nigeria’s biggest employer, structural limitations continue to cause it to perform poorly.
“Agriculture remains Nigeria’s largest source of employment, but its potential to generate better jobs and affordable food has been constrained by low productivity, limited access to quality inputs, climate shocks, and weak market linkages for smallholder farmers,” the statement said.
The bank pointed out that food and nutrition insecurity still exists nationwide and that many smallholder farmers are still forced to engage in subsistence farming. The statement claims that the AGROW project will provide a results-based matching grant facility to agribusinesses that purchase produce from smallholder farmers.
With priority given to important crops like rice, maize, cassava, and soybeans, the program will concentrate on aggregation, post-harvest handling, agro-processing, and enhanced market access.
The program will create a national digital farm and farmer registry, provide access to better and climate-resilient seeds, and improve agricultural research and extension services, according to the release.
It stated that in order to increase resilience and production, farmers will also profit from digital advisory services, such as localised meteorological and climate data.
The bank also revealed that the project would increase early-generation seed availability, strengthen private sector involvement in the production of high-quality inputs, and improve seed and fertilizer regulatory systems.
“In addition, the project will improve seed and fertilizer regulatory systems, expand early-generation seed supply, enhance private sector production of high-quality seed and farmers’ access to quality fertilizer, and promote transparent and responsible land-based investments,” it said.
Strong coordination, monitoring, and citizen participation mechanisms, with a focus on the involvement of women and youth, would help the initiative, the lender noted.
Mathew Verghis, the World Bank’s Country Director for Nigeria, spoke about the program and called it a significant step in changing the industry. He declared, “AGROW is a transformative step for Nigeria’s agriculture—empowering smallholder farmers, unlocking growth led by the private sector, and strengthening food security in a sustainable way.”
“This project is expected to benefit up to one million smallholder farmers, mobilize significant private investment, and increase yields across targeted crops,” he continued. Farmers in the participating states throughout Nigeria would benefit from increased resilience to climate shocks and better food and nutrition security.
An extra $220 million in private agricultural investment is anticipated for the six-year initiative, which is set to run from 2026 to 2032. According to the bank, the program supports larger initiatives to turn smallholder farms into profitable agribusinesses and is in line with Nigeria’s aims of increasing agricultural output, generating employment, and improving value addition.
Nigeria frequently depends on multilateral concessional funding to fund economic and infrastructure initiatives. Nigeria’s exposure to the World Bank Group was $19.54 billion as of September 30, 2025, according to data from the Debt Management Office. This amount included $1.36 billion from the International Bank for Reconstruction and Development and $18.18 billion from the International Development Association.
This indicates the World Bank’s leading position and accounts for roughly 40.34% of Nigeria’s entire external debt stock of $48.46 billion.
