World Bank Nigeria farmers loan of $500m to boost agriculture, improve food security, and support smallholders through AGROW project

The World Bank has approved a $500 million loan to support smallholder farmers in Nigeria, with funding to be channelled through the International Development Association for the AGROW programme.

Also read: Electrical Spark Disrupts Lagos Airport Terminal 3 Operations

The World Bank Nigeria farmers loan will finance the Nigeria Sustainable Agricultural Value-Chains for Growth project, aimed at increasing food production, improving processing and market access, and creating jobs across the agricultural sector.

The initiative comes as Nigeria continues to grapple with low agricultural productivity, climate change pressures, and limited access to quality inputs, which have kept many farmers trapped in subsistence farming.

Under the programme, agribusiness firms will receive support on the condition that they source produce directly from smallholder farmers, creating stronger market linkages and improving rural incomes.

The project will focus on key staple crops including rice, maize, cassava, and soybeans, while also investing in storage facilities, processing capacity, and distribution systems to reduce post-harvest losses.

In addition, the scheme will strengthen agricultural research and extension services, provide climate-resilient seeds, and establish a national digital database of farmers to enhance planning and service delivery.

Farmers will also gain access to digital advisory tools, including localised weather updates to guide planting and harvesting decisions, thereby improving yields and resilience.

The World Bank Nigeria farmers loan will further support reforms in seed and fertiliser regulation, boost the availability of quality inputs, and encourage private sector investment through transparent land-use frameworks.

According to Mathew Verghis, the project represents a significant step towards strengthening Nigeria’s food systems and attracting sustainable investment into agriculture.

The programme is expected to benefit up to one million smallholder farmers nationwide and will run for six years, from 2026 to 2032.

It is also projected to attract an additional $220 million in private sector investment.

Also read: CBN Completes Successful Recapitalisation of Banks with ₦4.65 Trillion Boost

The intervention underscores a growing push to modernise Nigeria’s agricultural value chains and enhance food security in the face of rising population and economic pressures.