World Bank Approves $500m AGROW Programme to Boost Nigeria’s Agriculture, Target 1 Million Farmers

Six-year initiative aims to transform smallholder farming, strengthen value chains, and tackle food insecurity nationwide

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By Daniel Idowu| Abuja, Nigeria – April 3, 2026

The World Bank has approved a $500 million credit facility to revitalise Nigeria’s agricultural sector under a new programme targeting smallholder farmers, agribusiness growth, and food security.

The funding, backed by the International Development Association (IDA), will support the Nigeria Sustainable Agricultural Value-Chains for Growth project, widely known as AGROW.

AGROW Project Targets Structural Weaknesses in Agriculture

According to a statement from the World Bank, the AGROW initiative is designed to increase productivity among smallholder farmers, strengthen agricultural value chains, and generate employment across Nigeria.

The project was officially approved on March 30, 2026, and is expected to run for six years, from 2026 to 2032.

Despite being Nigeria’s largest employer, agriculture continues to underperform due to persistent structural challenges, including low productivity, poor access to quality inputs, climate shocks, and weak market linkages.

Focus on Value Chains, Market Access, and Job Creation

The programme will prioritise key value chain improvements such as aggregation, post-harvest handling, agro-processing, and expanded market access.

Priority crops under the initiative include rice, maize, cassava, and soybeans—critical staples for Nigeria’s food system.

A major component of the project is a results-based matching grant scheme aimed at supporting agribusinesses that source produce directly from smallholder farmers, thereby strengthening farm-to-market connections.

Digital Agriculture and Climate Resilience at Core

The AGROW project will introduce a national digital farm and farmer registry, alongside digital advisory services that provide localised weather and climate data to farmers.

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It will also promote the adoption of improved, climate-resilient seeds and enhance agricultural research and extension services.

The World Bank noted that these interventions are essential to improving productivity and building resilience against climate-related shocks.

Boost for Seed Systems and Private Sector Participation

Efforts will also be made to reform seed and fertiliser regulatory systems, expand early-generation seed supply, and encourage private sector participation in producing high-quality agricultural inputs.

The initiative will further promote transparent and responsible land-based investments to attract more agribusiness funding.

One Million Farmers to Benefit

World Bank Country Director for Nigeria, Mathew Verghis, described the programme as a “transformative step” for the sector.

He noted that the project is expected to directly benefit up to one million smallholder farmers, increase yields, and mobilise an additional $220 million in private investment.

Rising Debt Exposure Raises Concerns

While the intervention is expected to stimulate growth, it also comes amid Nigeria’s increasing reliance on multilateral financing.

Data from the Debt Management Office shows that Nigeria’s exposure to the World Bank stood at $19.54 billion as of September 2025, accounting for over 40 percent of the country’s total external debt stock of $48.46 billion.

The AGROW initiative represents one of the largest recent investments in Nigeria’s agricultural sector, with the potential to reshape food production and rural livelihoods. However, its success will depend on effective implementation, transparency, and the government’s ability to balance development financing with rising debt obligations.