• $500 million IDA credit to support small farmers and agribusiness
• Project targets key crops including rice, maize, cassava, and soy
• Initiative aims to improve productivity, jobs, and food security

The World Bank has approved a $500 million credit from the International Development Association (IDA) to finance Nigeria’s Sustainable Agricultural Value-Chains for Growth (AGROW) project over six years, the institution announced on March 31.

The project aims to raise productivity among smallholder farmers, strengthen agricultural value chains, and create jobs, while improving food and nutrition security. AGROW will support agro-industries that source from small farmers through a results-based grant mechanism. Priority value chains 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 registry of farms and farmers.

According to World Bank Country Director for Nigeria Mathew Verghis, the project is expected to benefit around one million smallholder farmers, attract significant private investment, and increase yields across targeted crops.

A sector still facing structural challenges

The funding comes as Nigeria seeks to strengthen its agricultural value chains. On March 10, the government launched the Sustainable Power and Irrigation for Nigeria (SPIN) project, aimed at expanding irrigation and improving dam safety.

Agriculture accounts for about 24% of Nigeria’s GDP and employs roughly 50% of the workforce, with an additional 14% working in the broader agro-food sector, according to the International Trade Administration.

Despite its importance, the sector continues to face major constraints, including climate vulnerability, low levels of mechanization and irrigation, rising input costs, and limited access to financing.

To address these challenges, authorities have rolled out several programs, including the Commercial Agriculture Credit Scheme (CACS) and the Anchor Borrowers’ Program (ABP), led by the Central Bank of Nigeria. These initiatives aim to strengthen food self-sufficiency, improve value chains, and support job creation.

However, public investment remains limited. In 2025, the government allocated about 1.75% of the national budget to agriculture, well below the 10% target set under the Maputo Declaration on agriculture and food security in Africa.

The AGROW project is also expected to mobilize an additional $220 million in private investment in the agro-industrial sector over time.

Lydie Mobio