The African Development Bank (AfDB) has approved a $200 million loan to fund the second phase of Nigeria’s National Agricultural Growth Scheme – Agro-Pocket (NAGS-AP), aimed at boosting agricultural productivity, strengthening value chains, and promoting climate-smart farming practices. The approval follows an earlier financing under the Bank Group’s African Emergency Food Production Facility and will support the implementation of five initiatives under Nigeria’s National Agricultural Technology and Innovation Policy (NATIP).

According to a statement on the AfDB’s website, the funding will enhance access to high-quality seeds, fertilisers, and other essential inputs, revitalise extension services, and promote digital and climate-smart agricultural solutions. The project also aims to improve agricultural data management, helping policymakers and farmers make more informed decisions. Abdul Kamara, Director General of AfDB for Nigeria, explained that the second phase of NAGS-AP will expand access to quality inputs, digital tools, and climate-smart technologies for local farmers. “We are supporting farmers to improve productivity and resilience. This programme will continue to play a critical role in reducing food imports, boosting local production, and advancing inclusive growth across the country,” he said.

Phase one of the programme demonstrated early success, featuring an ICT-based system that delivered seeds, fertilisers, and pesticides through more than 600 agro-dealers nationwide. The initial phase also supported the cultivation of 118,000 hectares of wheat during the 2023/2024 dry season, tripling national wheat output to an estimated 0.5 million metric tons in 2024. In total, approximately 650,000 smallholder farmers producing wheat, rice, cassava, maize, sorghum, and millet benefited from the project.

Agriculture remains a cornerstone of Nigeria’s economy, employing 38 percent of the working population and contributing 25.2 percent to gross domestic product. Yet the sector struggles with low productivity due to limited access to high-quality inputs, inadequate land tenure and irrigation systems, climate variability, and soil degradation. The second phase of NAGS-AP, set to run for four years beginning in March 2026, seeks to address these constraints by providing farmers with the tools and technologies needed to enhance yields and resilience.

The programme also aligns with AfDB President Sidi Ould Tah’s Four Cardinal Points strategic vision for Africa, which emphasizes empowering young people and women through access to technology and financial support. By combining financial investment, modern technologies, and climate-smart practices, the AfDB aims to increase domestic crop production, reduce reliance on food imports, strengthen smallholder resilience, and foster inclusive economic growth.

With this $200 million investment, the AfDB underscores the critical role of multilateral financing in transforming African agriculture, demonstrating how targeted support for smallholder farmers and value chains can contribute to sustainable food security and long-term economic development in Nigeria.