Smallholder farmers are set to benefit from a $500 million World Bank-funded AGROW programme aimed at boosting productivity, strengthening value chains, and improving food security in Nigeria.
The World Bank has approved a $500 million credit facility through the International Development Association (IDA) to strengthen Nigeria’s agricultural sector under a new nationwide programme.
The funding will support the Nigeria Sustainable Agricultural Value Chains for Growth Project, also known as AGROW, a strategic initiative designed to enhance productivity, improve value chains, and boost food security.
In a statement released on Thursday, the World Bank says the project is aimed at increasing the productivity of smallholder farmers, strengthening agricultural value chains, and creating jobs, while improving food and nutrition security across the country.
The loan, approved on March 30, 2026, underscores growing international support for Nigeria’s agricultural transformation agenda.
According to the bank, agriculture remains Nigeria’s largest employer but continues to underperform due to persistent structural challenges, including low productivity, limited access to quality inputs, climate shocks, and weak market linkages.
It noted that many smallholder farmers remain trapped in subsistence farming, contributing to ongoing food and nutrition insecurity.
Under the AGROW programme, agribusinesses sourcing produce from smallholder farmers will benefit from a results-based matching grant facility. The initiative will prioritise key value chain activities such as aggregation, post-harvest handling, agro-processing, and improved market access.
The project will focus on staple crops including rice, maize, cassava, and soybeans.
In addition, the programme will strengthen agricultural research and extension services, expand access to climate-resilient seeds, and establish a national digital farm and farmer registry.
Farmers are also expected to benefit from digital advisory services, including localised weather and climate information, aimed at improving productivity and resilience.
The World Bank further stated that the initiative will enhance seed and fertiliser regulatory systems, boost early-generation seed supply, and encourage greater private sector participation in the production of high-quality agricultural inputs.
The programme will also promote transparent and responsible land-based investments, while ensuring strong coordination, monitoring, and citizen engagement, with a particular focus on women and youth inclusion.
Speaking on the development, the World Bank Country Director for Nigeria, Mathew Verghis, described AGROW as a transformative intervention for the sector.
“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,” he said.
READ ALSO
- World Bank Approves $500m AGROW Credit to Boost Nigeria’s Agriculture
- NIQS Renames Abuja Headquarters After Segun Ajanlekoko
- SEC Enforces Recapitalisation Plans Amid New Capital Thresholds
Verghis added that the project is expected to benefit up to one million smallholder farmers, mobilise significant private investment, and increase yields across targeted crops, while enhancing resilience to climate shocks.
The six-year project, scheduled to run from 2026 to 2032, is also projected to attract an additional $220 million in private agribusiness investment.
The World Bank noted that the initiative aligns with Nigeria’s broader development priorities, including job creation, increased agricultural productivity, and the transition from subsistence farming to commercially viable agribusiness.
Nigeria continues to rely on concessional multilateral financing to support key development programmes.
Data from the Debt Management Office shows that the country’s exposure to the World Bank Group stood at $19.54 billion as of September 30, 2025, representing about 40.34 percent of Nigeria’s total external debt stock of $48.46 billion.
About The Author
