The World Bank has approved a $500 million credit from the International Development Association (IDA) to support Nigeria’s agriculture sector through a new initiative called the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) Project.
The approval was announced in a statement published on the bank’s website, outlining the project’s goals and its expected impact on agricultural productivity and food security in the country.
The funding is designed to tackle long-standing structural issues in Nigeria’s agriculture sector, where productivity remains low due to climate shocks, weak market access, and other challenges, despite the sector being the country’s largest employer.
The statement said, “The World Bank has approved a $500 million International Development Association (IDA) credit for the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) Project, aimed at increasing smallholder farmers’ productivity, strengthening agricultural value chains, and creating jobs while improving food and nutrition security.”
It further explained that the project will focus on boosting the productivity of smallholder farmers while connecting them more effectively to markets and agribusinesses.
“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,” said the World Bank Country Director for Nigeria, Mathew Verghis.
He added that the initiative is expected to reach up to one million smallholder farmers and attract significant private sector investment into the agricultural value chain.
Under the programme, agribusinesses that commit to sourcing produce from smallholder farmers will receive support through a results-based matching grant system.
The funding will focus on areas such as aggregation, post-harvest handling, agro-processing, and improving access to markets.
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The project will target key staple crops including rice, maize, cassava, and soybeans, which are essential to Nigeria’s food system and industrial supply chains.
It will also strengthen agricultural research and extension services, expand access to improved and climate-resilient seeds, and introduce a national digital farm and farmer registry to enhance planning and transparency.
Farmers are also expected to benefit from digital advisory tools that provide localised weather and climate information to help improve yields and build resilience against environmental challenges.
In addition, AGROW will address gaps in Nigeria’s agricultural input systems by improving seed and fertiliser regulations, increasing the supply of early-generation seeds, and supporting private sector production of high-quality seeds.
The programme will also work to improve farmers’ access to fertilisers and promote transparent, land-based investments to attract more private capital into agriculture.
The six-year initiative, set to run from 2026 to 2032, is expected to draw in an additional $220 million in private agribusiness investment, strengthening its market-driven approach.
The project is part of broader efforts to move Nigeria’s agriculture sector from subsistence farming to a more commercial system that can create jobs and improve food availability.
Despite employing a large portion of the population, the sector has continued to face low productivity and limited value addition, contributing to ongoing food inflation and nutrition issues.
According to the World Bank, the AGROW project aligns with Nigeria’s priorities to increase productivity, create jobs, and expand value addition across agricultural value chains.
It also forms part of the bank’s wider Agriconnect initiative, which aims to transform smallholder farming systems around the world.
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