World Bank approves $500m credit to boost smallholder farming in Nigeria

THE World Bank has approved a $500 million credit facility for Nigeria under the International Development Association (IDA) to fund the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) project.

In a statement published on its website, the lender said the programme aims to boost the productivity of smallholder farmers, improve agricultural value chains, and support job creation across the sector.

The bank noted that although agriculture remains the largest employer in Nigeria, its full potential is limited by challenges such as low productivity, poor access to quality inputs, climate-related shocks, and weak market connections for smallholder farmers.

It added that many farmers are still stuck in subsistence-level production, while food and nutrition insecurity continues to impact millions across the country.

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According to the World Bank, the AGROW initiative will back agribusinesses willing to source inputs from smallholder farmers through a results-based matching grant framework.

The project will prioritise activities such as aggregation, post-harvest management, agro-processing, and improving market access in key value chains including rice, maize, cassava, and soybeans.

The Washington-based institution also said the programme will strengthen agricultural research and extension systems, widen access to improved and climate-resilient seeds, and develop a national digital registry for farms and farmers.

Farmers are also expected to benefit from digital advisory tools, including tailored weather and climate information to improve productivity and resilience.

Additionally, the project will focus on improving seed and fertiliser regulatory systems, expanding early-generation seed supply, and encouraging private sector participation in the production of high-quality inputs.

It will also promote transparent and responsible land-based investments, while deploying strong coordination, monitoring, and citizen engagement mechanisms to ensure accountability and inclusion, particularly for women and youth.

Speaking on the development, Mathew Verghis described the project as a ‘transformative step’ for the country’s agriculture sector.

He said the initiative is expected to support up to 1 million smallholder farmers, mobilise significant private investment, and increase yields across targeted crops.

Verghis added that the project would also improve food and nutrition security while strengthening farmers’ resilience to climate shocks in participating states.

The World Bank said the six-year programme, scheduled to run from 2026 to 2032, is also expected to attract about $220 million in additional private agribusiness investment.

Three funding packages for Nigeria

Economy Post reported in February that the World Bank was preparing to approve 3 funding facilities for Nigeria between March 26 and 27, 2026, targeted at boosting investments, jobs, sustainable agricultural value chains and the Central Bank of Nigeria (CBN) technical assistance.

According to the World Bank projects for 2025, one of the 3 projects is entitled, ‘Nigeria Actions for Investment and Jobs Acceleration,’ which is targeted at supporting the Nigerian government’s efforts to expand access to financial credit and digital services, while lowering prices, enhancing diversification and boosting agricultural productivity. The global lender will be extending a $1 billion credit to Nigeria in this respect.

This was approved on March 27, and is being implemented by the Federal Ministry of Finance. On the same day, the World Bank also approved a $6.8 million facility for the CBN. The global lender said this facility will be designed to catalyse the integration of advanced tools and data science into the CBN’s regulatory and supervisory processes.

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Earlier on March 26, the World Bank lent $50 million to Nigeria for a project entitled, ‘Nigeria Sustainable Agricultural Value-Chains for Growth.’ The project aims to address critical challenges that affect competitiveness and resilience of agricultural value-chains, while stifling the prospects for value-added growth and job creation.

The proposed project focuses on interventions that directly or indirectly contribute towards Nigeria’s agricultural sector modernisation, productivity and value-added growth, including improved food and nutrition security in line with the country’s Agriculture Promotion Policy (APP), National Agricultural Technology and Innovation Policy (NATIP), the global lender said.

“Nigeria’s priorities as highlighted in these policy documents is to achieve self-sufficiency in key commodities, transform agriculture into a business-oriented sector, and ensure food security, while also promoting sustainable income and job growth. This operation will also be aligned to the Bank’s Country Partnership Framework (CPF) as well as the recent aspirations highlighted in the Global Food and Nutrition Security (FNS) Program and the Mission Agri-connect,” the World Bank noted.

2025 World Bank lending to Nigeria

In 2025, the Bola Tinubu’s administration borrowed $3.754 billion from the World Bank alone, signifying the government’s rising growing appetite for foreign loans.

According to Economy Post‘s analysis from the World Bank’s projects for Nigeria, the global lender had 11 big projects for Nigeria last year, covering issues from sustainable agriculture and micro, small and medium enterprises (MSMEs) to digital infrastructire and nutrition improvement.