World Bank Commits $500m to Boost Nigeria’s Agricultural Value Chains

The World Bank has approved a $500 million credit facility to support Nigeria’s agricultural sector through a new initiative focused on improving productivity, strengthening value chains, and enhancing food security.

The funding, provided under the International Development Association, will finance the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) Project—a six-year programme designed to tackle structural bottlenecks such as low farm productivity, climate-related challenges, and limited access to markets.

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According to the institution:

“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.”

The programme is expected to reach up to one million smallholder farmers while unlocking additional private investment across the agricultural ecosystem.

The World Bank’s Country Director for Nigeria, Mathew Verghis, described the initiative as a major boost 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.”

Under the initiative, agribusiness firms that source produce from smallholder farmers will benefit from a results-based matching grant scheme. The programme will prioritise activities such as aggregation, post-harvest handling, agro-processing, and improved access to markets.

Focus will be placed on key staple crops including rice, maize, cassava, and soybeans—commodities that are central to both food security and industrial value chains.

In addition, the project will strengthen agricultural research systems, expand access to improved and climate-resilient seeds, and introduce a national digital registry for farms and farmers to improve data-driven planning and transparency.

Farmers will also gain access to digital advisory tools, including localised weather and climate information to help improve yields and resilience.

The initiative aims to address gaps in agricultural input systems by strengthening seed and fertiliser regulations, boosting early-generation seed supply, and encouraging private sector participation in input production.

It will also improve access to fertilisers and promote transparent land-based investments to attract more capital into the sector.

Scheduled to run from 2026 to 2032, the programme is expected to mobilise an additional $220 million in private agribusiness investment, reinforcing its private sector-driven approach.

The intervention forms part of broader efforts to transform Nigeria’s agriculture into a commercially viable sector capable of generating employment, improving food supply, and easing persistent food inflation challenges.