Juliet Ezeh
The World Bank has approved a $500 million credit facility for Nigeria in a move aimed at overhauling the country’s agricultural sector, with a strong focus on smallholder farmers, food security, and agribusiness growth.
The funding, provided through the International Development Association, will drive the Nigeria Sustainable Agricultural Value Chains for Growth Project (AGROW), a six-year initiative expected to reshape how farming operates across the country.
Approved on March 30, 2026, the programme is designed to tackle long-standing inefficiencies in Nigeria’s agriculture by boosting productivity, strengthening value chains, and linking farmers more directly to markets.
Despite being Nigeria’s largest employer, the agricultural sector has struggled with low yields, poor access to quality inputs, and weak market systems. The AGROW project seeks to reverse this trend by transitioning millions of farmers from subsistence practices into commercially viable agribusiness operations.
A major highlight of the initiative is its private sector-driven model. Through a results-based matching grant system, agribusinesses that source produce from smallholder farmers will receive funding support, encouraging investment in aggregation, processing, and distribution networks.
Priority will be placed on key staple crops such as rice, maize, cassava, and soybeans, with targeted interventions to reduce post-harvest losses and improve storage and logistics.
In a significant digital shift, the project will also establish a national farmer registry and deploy digital advisory tools. These tools will provide farmers with real-time weather updates and climate information, helping them make smarter planting and harvesting decisions in the face of increasing climate shocks.
The programme is expected to benefit up to one million farmers nationwide, while unlocking an additional $220 million in private investment. It will also strengthen seed systems, improve fertiliser quality control, and promote access to climate-resilient inputs.
According to the World Bank’s Country Director for Nigeria, Mathew Verghis, the AGROW project represents a turning point for the sector.
He noted that the initiative will not only improve yields but also create jobs, enhance food security, and build resilience among farmers across participating states.
Beyond production, the project places strong emphasis on inclusion, targeting women and youth as key beneficiaries, while introducing transparent land investment frameworks and improved regulatory systems.
The development comes as Nigeria continues to rely heavily on concessional financing to support critical sectors. Data from the Debt Management Office shows that the country owes the World Bank Group $19.54 billion as of September 2025, accounting for over 40 per cent of its total external debt.
While the new funding offers a pathway to revitalise agriculture, analysts say its success will depend on effective implementation, transparency, and the ability to attract sustained private sector participation.
If executed properly, AGROW could mark a decisive shift in Nigeria’s agricultural landscape—moving the sector from low productivity to a more competitive, investment-driven ecosystem capable of feeding the nation and exporting surplus.
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.