The World Bank has approved a $500 million concessional loan to support Nigeria’s agricultural transformation, targeting up to one million smallholder farmers and agribusinesses. The funding is expected to play a critical role in addressing food insecurity, improving productivity, and unlocking private sector investment in one of Africa’s largest agricultural economies.

The financing, provided through the International Development Association, will be deployed under the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) programme. Scheduled to run from 2026 to 2032, the initiative aims to modernize farming systems, strengthen value chains, and enhance market access across the country.

Agriculture remains a cornerstone of Nigeria’s economy, contributing roughly 25% of GDP and employing about half of the population. Despite its importance, the sector continues to face persistent challenges, including low productivity, inadequate infrastructure, climate shocks, and limited access to financing—factors that have constrained growth and kept many farmers in subsistence production.

The AGROW programme is designed to address these structural gaps by connecting farmers more directly to markets and private sector buyers. It will offer matching grants to agribusinesses that source produce from smallholders, particularly in key value chains such as rice, maize, cassava, and soybeans. These crops are essential not only for food security but also for industrial processing.

Beyond financial support, the programme includes investments in agricultural research, extension services, and the distribution of climate-resilient seeds. A national digital registry for farmers and farmland will also be introduced, aimed at improving planning, input delivery, and access to advisory services such as weather and market information.

Another key component of the initiative is improving regulatory systems for seeds and fertilisers while encouraging greater private sector participation in input supply and agricultural investments. The World Bank estimates the programme could attract an additional $220 million in private capital over its lifespan, further amplifying its impact.

The funding comes at a time when Nigeria is intensifying efforts to reduce reliance on food imports and strengthen domestic production. However, public investment in agriculture remains relatively low, with less than 2% of the national budget allocated to the sector—well below the 10% target set under the Maputo Declaration.

As food prices rise and pressure on household incomes increases, the success of the AGROW programme will be closely watched. If effectively implemented, it could mark a turning point in Nigeria’s agricultural development—improving livelihoods, boosting productivity, and reinforcing food security across the country.