The World Bank has approved a $500 million credit facility for Nigeria to strengthen the country’s agricultural sector, improve food security, and create jobs through a new programme targeting smallholder farmers and agricultural value chains.
The funding, approved under the International Development Association arm of the World Bank, will support the Nigeria Sustainable Agricultural Value Chains for Growth Project, also known as AGROW. The initiative is designed to improve agricultural productivity, strengthen market linkages, and enhance food and nutrition security across the country.
According to a press statement obtained from the World Bank’s website on Thursday, the project will focus on increasing the productivity of smallholder farmers while also addressing challenges across the agricultural value chain, including storage, processing, transportation, and access to markets.
The statement read, “The World Bank has approved a $500m International Development Association credit for the Nigeria Sustainable Agricultural Value Chains for Growth Project, aimed at increasing smallholder farmers’ productivity, strengthening agricultural value chains, and creating jobs while improving food and nutrition security.”
The approval date for the loan project was disclosed as March 30, 2026, confirming earlier reports published in February by The PUNCH that the funding was under consideration and nearing approval.
The AGROW project is expected to target key crops and value chains in different parts of the country, helping farmers gain better access to improved seeds, fertilizers, modern farming techniques, and financing. It will also support agro-processing businesses and small-scale agricultural enterprises, which are critical to reducing post-harvest losses and improving the value of farm produce.
Agriculture remains one of Nigeria’s largest employers, particularly in rural areas where smallholder farmers account for the majority of food production. However, the sector has continued to face major challenges, including poor infrastructure, limited access to credit, climate change, insecurity in farming communities, and inadequate storage and processing facilities.
Experts believe the new World Bank funding could help address some of these structural challenges by improving rural infrastructure, strengthening agricultural institutions, and supporting policies that encourage private sector investment in agriculture.
The project is also expected to create jobs across the agricultural value chain, from farming and processing to logistics, marketing, and export. This is particularly important as Nigeria continues to battle high unemployment and rising food prices.
Food inflation has remained a major concern in Nigeria in recent years, driven by factors such as insecurity in farming regions, high transportation costs, currency fluctuations, and global supply chain disruptions. By improving local production and strengthening value chains, the AGROW programme is expected to help stabilize food supply and reduce pressure on food prices over time.
Analysts say the success of the programme will depend largely on effective implementation, transparency, and the ability of the government to ensure that the funds reach the intended beneficiaries, particularly smallholder farmers who form the backbone of Nigeria’s agricultural sector.
If properly implemented, the Nigeria Sustainable Agricultural Value Chains for Growth Project could significantly improve agricultural productivity, enhance food security, create employment opportunities, and contribute to Nigeria’s broader economic growth.
The $500 million credit facility represents another major intervention by the World Bank in Nigeria’s development efforts, particularly in agriculture, which continues to be seen as a key sector for diversifying the economy away from oil and ensuring long-term economic stability.
