By Boluwatife Adedokun
The World Bank has approved a $500 million International Development Association (IDA) credit to support Nigeria’s agricultural sector through a new programme targeting smallholder farmers, value chains and food security.
The funding will support the Nigeria Sustainable Agricultural Value Chains for Growth Project, also known as AGROW, which aims to improve productivity, strengthen market linkages and create jobs across the country.
According to a statement from the World Bank, the project is designed to support farmers and agribusinesses while improving food and nutrition security.
“The World Bank has approved a $500m 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,” the statement said.
The global lender noted that agriculture remains Nigeria’s largest employer but continues to face challenges that limit its performance.
“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 bank said.
The World Bank added that many smallholder farmers remain trapped in subsistence farming, while food and nutrition insecurity persists in parts of the country.
According to the statement, the AGROW project will support agribusinesses that source produce from smallholder farmers through a results-based matching grant facility, focusing on aggregation, post-harvest handling, agro-processing and improved market access.
The programme will prioritise key crops such as rice, maize, cassava and soybeans, while also strengthening agricultural research and extension services, expanding access to improved and climate-resilient seeds, and establishing a national digital farm and farmer registry.
“In addition, the project will improve seed and fertiliser regulatory systems, expand early-generation seed supply, enhance private sector production of high-quality seed and farmers’ access to quality fertiliser, and promote transparent and responsible land-based investments,” the bank said.
Speaking on the project, the World Bank Country Director for Nigeria, Mathew Verghis, said the initiative would support farmers and encourage private sector investment in agriculture.
“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,” he said.
He added, “This project is expected to benefit up to one million smallholder farmers, mobilise significant private investment, and increase yields across targeted crops. At the same time, it will help to ensure improved food and nutrition security and greater resilience to climate shocks among farmers in the participating states across Nigeria.”
The six-year project, scheduled to run from 2026 to 2032, is expected to attract an additional $220 million in private agribusiness investment.
Data from the Debt Management Office shows that Nigeria’s exposure to the World Bank Group stood at $19.54 billion as of September 30, 2025, representing a large share of the country’s external debt stock.
