World Bank Approves $500 Million to Revive Nigeria’s Agricultural Sector

Samuel Edward

The World Bank has approved $500 million International Development Association credit for the Nigeria Sustainable Agricultural Value-Chains for Growth Project, known as AGROW. The approval is said to be a decisive intervention to address Nigeria’s deepening food insecurity and unlock the economic potential of its agriculture sector.

The core mandate of the AGROW Project is to lift millions of smallholder farmers from subsistence into commercial agriculture. The initiative seeks to raise farmer productivity, fortify agricultural value chains from farm to market, and generate sustainable jobs across rural communities. At its heart, the project ties economic growth directly to improved food and nutrition security for Nigerians.

Rather than broad disbursement, the $500 million will be channeled through a results-based matching grant facility. This approach incentivizes agribusinesses that commit to sourcing directly from smallholder farmers. The funds will specifically address bottlenecks in aggregation, post-harvest handling, agro-processing,and market access. Four priority crops have been identified for the initial phase: rice, maize, cassava, and soybeans.

Beyond processing and logistics, AGROW is investing heavily in the backbone of modern farming. A national digital farm and farmer registry will be established, paired with digital advisory services that deliver localized weather and climate information to farmers. The project will also overhaul input systems by strengthening seed and fertilizer regulation, expanding the supply of early-generation seed, and encouraging private sector production of high-quality, climate-resilient seed varieties. Agricultural research and extension services will be upgraded to ensure farmers have access to the knowledge and technology they need.

Despite being Nigeria’s largest employer, the agricultural sector remains constrained by systemic challenges. Productivity is low, access to quality inputs is limited, and climate shocks routinely devastate harvests. For most smallholders, weak market linkages mean they cannot reliably sell surplus produce at fair prices. The result is a cycle where farmers remain trapped in subsistence farming while millions of Nigerians face acute food and nutrition insecurity.

Minister of Agriculture and Food Security, Senator Abubakar Kyari, described the World Bank facility as a catalyst that will “accelerate development in the agriculture ecosystem.”_ The AGROW Project aligns directly with President Bola Tinubu’s Renewed Hope Agenda, which prioritizes food security and rural industrialisation as pillars of national development.

This credit facility also complements the broader $14 billion, six-year Agri-Connect initiative. Agri-Connect aims to build connectivity between farmers, processors, markets, and financial systems, creating stronger value chains and expanded agro-processing capacity nationwide.

While the AGROW approval has drawn significant attention, it is separate from another $500 million World Bank package approved in December 2025. That facility, known as FINCLUDE, is dedicated to expanding finance for micro, small, and medium enterprises through the Development Bank of Nigeria. AGROW remains focused exclusively on agricultural value chains and smallholder integration.

In essence, the $500 million AGROW credit is designed to fix the structural gaps that keep Nigerian agriculture underperforming. By funding aggregation centres, processing infrastructure, digital tools, and improved inputs, the project targets the exact points where value is lost between the farm and the consumer. With rice, maize, cassava, and soybeans as the starting point, the goal is to demonstrate a model that moves smallholder farmers into profitable, resilient, and scalable agribusiness.