The World Bank plans to provide a $500m IDA loan to Nigeria for smallholder agriculture, value chain development, and rural job creation. The AGROW project targets increased productivity, private sector engagement, and climate-resilient farming practices.
World Bank to Provide $500m Boost for Nigerian Agriculture
By Juliet Ezeh
The World Bank is set to approve a $500 million loan to Nigeria aimed at improving agricultural productivity, strengthening value chains, and generating employment in participating states.
The facility, detailed in the World Bank’s Project Information Document for the Nigeria Sustainable Agricultural Value-Chains for Growth also known as AGROW targets smallholder farmers and aligns with the Federal Government’s Renewed Hope Agenda. The estimated approval date for the initiative is March 30, 2026, and funding will come entirely from the International Development Association.
The project will adopt a private sector-led, public sector-facilitated model to integrate smallholders into structured markets, promote value addition, and improve supply chain efficiency. Components include modernising production, expanding access to improved seeds and digital agriculture platforms, strengthening policy frameworks, and enhancing project coordination and monitoring.
According to the World Bank, agriculture employs roughly one-third of Nigeria’s workforce, with about 21 million people engaged in primary farming. Despite its potential, Nigeria still imports approximately $10 billion in food annually. The new AGROW project aims to address these challenges by fostering productivity, climate resilience, and rural income growth while mobilising private investment.
If approved, the $500 million facility will add to Nigeria’s growing portfolio of concessional loans from the World Bank, which accounted for $19.39 billion of the country’s external debt as of June 2025. This underscores the Bank’s pivotal role in supporting Nigeria’s development programmes amid fiscal pressures and global market volatility.
The initiative represents a strategic push to leverage agriculture as a driver of economic growth, food security, and job creation, with a focus on enhancing smallholder participation and building sustainable value chains across the nation.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.