The World Bank has approved a $500 million credit facility to support Nigeria’s agricultural sector through a new programme aimed at improving productivity, strengthening value chains, and enhancing food security.

The financing, provided by the International Development Association (IDA), will fund the Nigeria Sustainable Agricultural Value Chains for Growth Project, known as AGROW. The initiative is designed to boost smallholder farmers’ productivity, improve market access, and generate employment across the country.

According to a statement released on Thursday, the approval for the project was granted on March 30, 2026. The World Bank said the programme would address key structural challenges limiting the performance of Nigeria’s agricultural sector, despite its status as the country’s largest employer.

“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 statement noted.

The bank highlighted that many smallholder farmers remain engaged in subsistence farming, contributing to persistent food and nutrition insecurity nationwide.

Under the AGROW project, agribusinesses that source produce from smallholder farmers will receive support through a results-based matching grant facility. The programme will prioritise investments in aggregation, post-harvest handling, agro-processing, and improved market access, focusing on key crops such as rice, maize, cassava, and soybeans.

In addition, the initiative will strengthen agricultural research and extension services, expand access to climate-resilient seeds, and establish a national digital registry for farms and farmers. Participants will also benefit from digital advisory services, including localised weather and climate information.

The World Bank said the project would further enhance seed and fertiliser regulatory systems, increase early-generation seed supply, and encourage private sector participation in the production of high-quality agricultural inputs. It will also promote transparent and responsible land-based investments.

The programme will incorporate strong coordination, monitoring, and citizen engagement frameworks, with a particular focus on the inclusion of women and youth.

The World Bank Country Director for Nigeria, Mathew Verghis, described the initiative as a transformative step for the sector.

“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.

Verghis added that the project is expected to benefit up to one million smallholder farmers, mobilise significant private investment, and increase yields across targeted crops, while improving resilience to climate shocks.

The six-year project, scheduled to run from 2026 to 2032, is also expected to attract an additional $220 million in private agribusiness investment.

The World Bank noted that the initiative aligns with Nigeria’s broader development priorities of increasing agricultural productivity, creating jobs, and promoting value addition, while supporting the transition from subsistence farming to commercially viable agribusinesses.

Nigeria continues to rely on concessional multilateral financing to fund key development programmes. Data from the Debt Management Office indicates that the country’s exposure to the World Bank Group stood at $19.54 billion as of September 30, 2025, accounting for approximately 40.34 per cent of its total external debt stock of $48.46 billion.