$500m AGROW project set to boost smallholder farmers, food security in Nigeria

The World Bank has approved a $500 million International Development Association (IDA) credit to advance Nigeria’s agricultural sector, targeting smallholder farmers, agribusinesses, and food security under the Nigeria Sustainable Agricultural Value Chains for Growth Project (AGROW).

The project aims to enhance farm productivity, strengthen market linkages, create jobs, and improve food and nutrition security across the country. The loan approval was formally granted on March 30, 2026, following earlier reports by The PUNCH in February 2026.

According to a statement from the World Bank, agriculture remains Nigeria’s largest employer but continues to underperform due to structural challenges, including low productivity, limited access to quality inputs, weak market linkages, and exposure to climate shocks.

“Agriculture remains Nigeria’s largest source of employment, yet low productivity, limited access to quality inputs, climate shocks, and weak market linkages for smallholder farmers have constrained its potential to generate better jobs and affordable food,” the statement said.

The AGROW project will support agribusinesses sourcing produce from smallholder farmers through a results-based matching grant facility, focusing on aggregation, post-harvest handling, agro-processing, and improved market access. Priority crops include rice, maize, cassava, and soybeans.

The initiative will also strengthen agricultural research and extension services, expand access to improved and climate-resilient seeds, and establish a national digital farm and farmer registry. Farmers will gain access to digital advisory services, including localized weather and climate information, to enhance productivity and resilience.

In addition, the project will improve seed and fertilizer regulatory systems, expand early-generation seed supply, enhance private sector production of high-quality seeds, and facilitate farmers’ access to quality fertilizers. The program also emphasizes transparent and responsible land-based investments and includes strong coordination, monitoring, and citizen engagement mechanisms, with special focus on women and youth participation.

Speaking on the project, Mathew Verghis, World Bank Country Director for Nigeria, described AGROW as a transformative step for the country’s agriculture.

“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,” Verghis said.

He added, “This project is expected to benefit up to one million smallholder farmers, mobilize significant private investment, and increase yields across targeted crops. It will also enhance resilience to climate shocks in participating states and improve food and nutrition security for Nigerian households.”

The six-year initiative, running from 2026 to 2032, is projected to attract an additional $220 million in private agribusiness investment, further supporting the transition of smallholder farming into commercially viable agribusinesses.

The World Bank emphasized that AGROW aligns with Nigeria’s national priorities of boosting agricultural productivity, creating jobs, and enhancing value addition across the sector.

Nigeria frequently relies on concessional multilateral financing to fund infrastructure and development programs. According to the Debt Management Office, the country’s total exposure to the World Bank Group stood at $19.54 billion as of September 30, 2025, with $18.18 billion from the International Development Association (IDA) and $1.36 billion from the International Bank for Reconstruction and Development (IBRD).

This represents roughly 40.34 per cent of Nigeria’s total external debt stock of $48.46 billion, highlighting the World Bank’s dominant role among the country’s international creditors.