The World Bank has approved a $500 million credit facility under the International Development Association (IDA) to support Nigeria’s agricultural sector through the Sustainable Agricultural Value-Chains for Growth (AGROW) Project.
The initiative is designed to enhance smallholder farmers’ productivity, strengthen agricultural value chains, and improve food and nutrition security, while also creating jobs across the sector.
In a statement, the global development institution noted that although agriculture remains Nigeria’s largest source of employment, its potential has been hindered by low productivity, limited access to quality inputs, climate-related shocks, and weak market linkages.
It further observed that many smallholder farmers remain confined to subsistence farming, with food and nutrition insecurity continuing to affect millions of Nigerians.
According to the World Bank, “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.”
Commenting on the development, the World Bank Country Director for Nigeria, Mathew Verghis, described the initiative as a major step toward transforming the sector.
“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,” he said.
The World Bank stated that the six-year project, scheduled to run from 2026 to 2032, is expected to attract an additional $220 million in private agribusiness investment. It also aligns with Nigeria’s broader priorities of boosting productivity, creating jobs, and enhancing value across the agricultural sector.
The AGROW project forms a key component of the World Bank’s Agriconnect initiative, aimed at transforming smallholder farming from subsistence activity into commercially viable agribusiness.
