Nigeria Secures $500 Million Loan from World Bank to Boost Farming Industry

The World Bank has given the green light to a $500m International Development Association credit, which is set to bolster Nigeria's agricultural sector through a new programme focused on smallholder farmers, value chains, and food security.

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This funding will be channelled into the Nigeria Sustainable Agricultural Value Chains for Growth Project, also known as AGROW, with the goal of enhancing productivity, strengthening market connections, and creating jobs across the country.

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A statement on the World Bank's website, accessed on Thursday, outlined the details of the $500m credit, which aims to increase smallholder farmers' productivity, fortify agricultural value chains, and create jobs while improving food and nutrition security.

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The approval date for the loan project was revealed to be March 30, 2026, a detail that was previously reported in February 2026.

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According to the global lender, agriculture remains Nigeria's largest source of employment, but its potential is hindered by structural constraints, resulting in underperformance.

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The bank noted that many smallholder farmers are still engaged in subsistence farming, and food and nutrition insecurity persists across the country, highlighting the need for intervention.

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The AGROW project will provide support to agribusinesses that source produce from smallholder farmers through a results-based matching grant facility, focusing on areas such as aggregation, post-harvest handling, and improved market access.

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Prioritising key crops like 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.

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Farmers will also have access to digital advisory services, including localised weather and climate information, to enhance productivity and resilience.

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The project will improve seed and fertiliser regulatory systems, boost early-generation seed supply, and enhance private sector participation in the production of high-quality inputs, according to the bank.

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The lender stated that the project will promote transparent and responsible land-based investments, in addition to improving seed and fertiliser regulatory systems and expanding early-generation seed supply.

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The programme will be supported by strong coordination, monitoring, and citizen engagement mechanisms, with a focus on including women and youth.

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World Bank Country Director for Nigeria, Mathew Verghis, described the project as a major step toward transforming the sector, stating that AGROW is a transformative step for Nigeria's agriculture.

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Verghis added that the project is expected to benefit up to one million smallholder farmers, mobilise significant private investment, and increase yields across targeted crops, while ensuring improved food and nutrition security and greater resilience to climate shocks.

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The six-year project, scheduled to run from 2026 to 2032, is expected to attract an additional $220m in private agribusiness investment.

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The initiative aligns with Nigeria's priorities of boosting agricultural productivity, creating jobs, and enhancing value addition, while supporting broader efforts to transition smallholder farming into commercially viable agribusinesses.

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Nigeria often relies on concessional multilateral financing to support infrastructure and development programmes, with the World Bank being a dominant creditor.

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According to data from the Debt Management Office, Nigeria's exposure to the World Bank Group stood at $19.54bn as of September 30, 2025, comprising $18.18bn from the International Development Association and $1.36bn from the International Bank for Reconstruction and Development.

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This represents about 40.34 per cent of Nigeria's total external debt stock of $48.46bn, highlighting the World Bank's significant position among the country's creditors.