Under 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 support Nigeria’s agricultural sector.
The money will help the Nigeria Sustainable Agricultural Value Chains for Growth Project, or AGROW, which aims to boost market connections, increase productivity, and generate employment nationwide.
“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,” stated 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 as March 30, 2026.Under 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 support Nigeria’s agricultural sector.
The money will help the Nigeria Sustainable Agricultural Value Chains for Growth Project, or AGROW, which aims to boost market connections, increase productivity, and generate employment nationwide.
“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,” stated 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 as March 30, 2026.In reference to the loan, the international lender stated 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 read.
The bank pointed out that food and nutrition insecurity still exists nationwide, and many smallholder farmers are still forced to engage in subsistence farming.
The statement claims that the AGROW project will use a results-based matching funding program to assist agribusinesses that purchase food from smallholder farmers.
The program would prioritize important crops such rice, maize, cassava, and soybeans and concentrate on aggregation, post-harvest handling, agro-processing, and enhanced market access.
The program will create a national digital farm and farmer registry, increase access to enhanced and climate-resilient seeds, and improve agricultural research and extension services, according to the release.
It stated that in order to increase production and resilience, farmers will also profit from digital advisory services, such as localized weather and climate information.
The bank also revealed that the project would strengthen early-generation seed supplies, improve seed and fertilizer regulatory frameworks, and increase private sector involvement in the production of high-quality inputs.
“In addition, the project will enhance private sector production of high-quality seed and farmers’ access to quality fertilizer, expand early-generation seed supply, improve seed and fertilizer regulatory systems, 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 assist the program, the lender continued.
Mathew Verghis, the World Bank’s Country Director for Nigeria, spoke about the project and called it a significant step in changing the industry.
He declared, “AGROW is a revolutionary step for Nigeria’s agriculture—empowering smallholder farmers, unlocking growth driven by the private sector, and strengthening food security in a sustainable way.”
“This project is expected to mobilize significant private investment, increase yields across targeted crops, and benefit up to one million smallholder farmers,” he continued. In addition, it would make farmers in the participating states of Nigeria more resilient to climate shocks and promote better food and nutrition security.
It is anticipated that the six-year project, which will run from 2026 to 2032, will draw an extra $220 million in private agriculture investment.
According to the bank, the program supports larger initiatives to turn smallholder farms into profitable agribusinesses while also helping Nigeria’s aims of increasing agricultural output, generating jobs, and improving value addition.
Nigeria frequently depends on concessional multilateral funding for economic and infrastructure projects.
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 was made up of $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 among Nigeria’s creditors, accounting for around 40.34 percent of the country’s total external debt stock of $48.46 billion.
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