The has announced the approval of a $500 million credit facility for Nigeria through the (IDA) to support the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) project.
In a statement published on its website, the bank said the initiative aims to improve productivity among smallholder farmers, strengthen agricultural value chains, and generate employment.
“Agriculture remains Nigeria’s largest source of employment, yet low productivity, limited access to quality inputs, climate shocks, and weak market linkages for smallholder farmers have constrained its potential to generate better jobs and affordable food,” the statement reads.
“Many smallholder farmers remain trapped in subsistence farming, while food and nutrition insecurity continues to affect millions of Nigerians.”
The World Bank explained that the AGROW project will support agribusinesses committed to sourcing from smallholder farmers through a results-based matching grant scheme.
“The intervention will focus on aggregation, post-harvest handling, agro-processing, and improved market access across priority value chains such as rice, maize, cassava, and soybeans,” the bank said.
The Washington-based institution added that the initiative will also enhance agricultural research and extension services, improve access to climate-resilient seeds, and establish a national digital registry for farms and farmers.
“Farmers are expected to benefit from digital advisory services, including localised weather and climate information to boost productivity and resilience,” the financial institution said.
Additionally, the project will seek to strengthen seed and fertiliser regulatory systems, increase early-generation seed supply, and encourage private sector participation in the production of high-quality inputs.
“It will also promote transparent and responsible land-based investments,” the institution added.
“Strong coordination, monitoring, and citizen engagement mechanisms will be deployed to ensure accountability and inclusion, particularly for women and youth.”
Speaking on the development, described AGROW as a “transformative step” for Nigeria’s agriculture 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,” Verghis said.
“This project is expected to benefit up to one million smallholder farmers, mobilise 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 participating states.”
The World Bank added that the six-year project, set to run from 2026 to 2032, is projected to attract an additional $220 million in private agribusiness investment.