World Bank $500M loan to Nigeria set for March 30 approval, aimed at boosting smallholder productivity and strengthening agricultural value chains

The World Bank is expected to approve a $500 million loan to Nigeria on 30 March 2026 to enhance agricultural productivity and strengthen key value chains across participating states.

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The facility will be provided through the International Development Association, the Bank’s concessional lending arm.

The Federal Republic of Nigeria will act as the borrower, with project implementation overseen by the Federal Ministry of Agriculture and Food Security in partnership with state governments.

The initiative aims to increase smallholder productivity, create jobs, and address food and nutrition insecurity, which the World Bank identifies as among Nigeria’s most urgent development challenges.

The project will operate through four primary components: integrating smallholder farmers into competitive value chains; modernising production systems; strengthening policy frameworks to attract private investment in agricultural input markets; and ensuring effective project coordination, monitoring, and evaluation.

The loan comes amid continued growth in Nigeria’s external debt.

Funding from the International Development Association increased by $1.9 billion over the past year, reaching $18.7 billion by 31 December 2025.

The Debt Management Office reported that Nigeria’s total external debt stood at $46.98 billion as of 30 June 2025, with the World Bank Group accounting for $19.39 billion of that total.

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Officials anticipate that the new facility will provide targeted support to smallholder farmers while attracting private sector investment, positioning the country to strengthen its agricultural sector and improve food security outcomes.