World Bank Okays $500m Credit Facility to Boost Nigeria’s Agric Value Chains, Jobs

•  Targets one million smallholder farmers

Ndubuisi Francis in Abuja

The World Bank has approved a $500 million International Development Association (IDA) credit for the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) Project, aimed at increasing smallholder farmers’ productivity, strengthening agricultural value chains, and creating jobs while improving food and nutrition security.

The IDA is one of the members of the World Bank Group.

According to the global development institution, agriculture remains Nigeria’s largest source of employment, yet low productivity, limited access to quality input, climate shocks, and weak market linkages for smallholder farmers have constrained its potential to generate better jobs and affordable food.

In a statement, it observed that many smallholder farmers remain trapped in subsistence farming, while food and nutrition insecurity continues to affect millions of Nigerians.

It said, “AGROW will support agribusinesses that commit to sourcing from smallholder farmers through a results based matching grant facility focused on aggregation, post harvest handling, value addition through agro-processing, and improved market access.

“There will be a focus on priority value chains including rice, maize, cassava and soybeans.  It 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 benefit from digital advisory services, including localized weather and climate information, to improve 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 seed and farmers’ access to quality fertilizer, and promote transparent and responsible land based investments.

“Strong coordination, monitoring, and citizen engagement mechanisms will support accountability and inclusion, with a particular focus on women and youth.”

In his remarks, World Bank Country Director for Nigeria, Mathew Verghis said, “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.

“This project is expected to benefit up to one million smallholder farmers, mobilize significant private investment and increase yields across targeted crops. At the same time, it will help to ensure improved food and nutrition security and greater resilience to climate shocks among farmers in the participating states across Nigeria.”

The World Bank explained that the six year project (2026–2032) is expected to raise an additional $220 million from private agribusiness investment, and aligns with Nigeria’s priority to enhance productivity, job creation and value in the agriculture sector.

It added that it is a central component in Nigeria of the World Bank’s Agriconnect initiative to transform small-holder farming from subsistence into a commercially successful agribusiness