World Bank Approves $500 Million Loan to Boost Nigeria’s Agricultural Sector
The World Bank has authorized a $500 million loan through the International Development Association aimed at enhancing Nigeria’s agricultural landscape. This new initiative specifically targets smallholder farmers, focusing on value chains and food security.
The financing will bolster the Nigeria Sustainable Agriculture Value Chains for Growth Project, commonly referred to as AGROW. The project’s objectives include elevating productivity, establishing stronger market connections, and generating employment opportunities throughout the nation.
According to a statement released by the World Bank, the funding is pivotal for improving smallholder farmer productivity and agricultural value chains, in addition to enhancing food and nutrition security. The loan approval was officially noted on March 30, 2026, as highlighted in a report from The PUNCH earlier this year.
The World Bank remarked on the structural challenges that continue to hinder agricultural performance in Nigeria, despite the sector being the largest employer in the country. The report indicated that low productivity, inadequate access to quality inputs, climate-related issues, and weak market connections significantly limit the potential for agriculture to provide better employment and affordable food.
Amid ongoing food and nutrition challenges, many smallholder farmers remain ensnared in subsistence farming methods. The AGROW initiative plans to support agribusinesses that source agricultural products from these farmers, utilizing a performance-based matching subsidy scheme to enhance their operations.
The program will prioritize improvements in aggregation, post-harvest processing, agro-processing, and market access, focusing on key crops such as rice, maize, cassava, and soybean. Furthermore, it will reinforce agricultural research and extension services, expand availability of climate-resilient seeds, and establish a national digital agriculture and farmer registry.
Farmers will have access to digital advisory services, including localized weather forecasts and meteorological data, designed to boost productivity and resilience. The World Bank also disclosed that the project will optimize seed and fertilizer regulatory frameworks, increase the supply of early-generation seeds, and enhance private sector involvement in the production of high-quality agricultural inputs.
The initiative emphasizes the inclusion of women and youth, combining strong coordination, monitoring, and public participation mechanisms. According to Matthew Bergis, the World Bank’s Country Director for Nigeria, the AGROW project marks a significant advancement in transforming the agricultural sector. It is projected to benefit up to one million smallholder farmers while attracting an estimated $220 million in additional private agribusiness investment over its six-year timeline from 2026 to 2032.
In alignment with Nigeria’s goals to enhance agricultural productivity, create jobs, and add value, the World Bank’s initiative supports broader efforts to transition smallholder farmers into more commercially viable agribusinesses. As of September 30, 2025, Nigeria’s exposure to the World Bank Group totaled $19.54 billion, predominantly from the International Development Association, underscoring the institution’s significant role among the country’s creditors.
