The World Bank has approved a $500 million credit facility to support Nigeria’s agricultural sector through a new initiative aimed at transforming smallholder farming and strengthening value chains.

The funding, provided through the International Development Association (IDA), will finance the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) Project, a six-year programme designed to improve productivity, enhance food security, and create jobs across the country.

According to the World Bank, agriculture remains Nigeria’s largest employer, but the sector continues to face major challenges including low productivity, poor access to quality inputs, climate-related shocks, and weak market connections for smallholder farmers.

The AGROW project is expected to directly benefit up to one million farmers by supporting agribusinesses that source produce from them. This will be done through a results-based matching grant system focused on aggregation, post-harvest handling, agro-processing, and improved market access.

Priority crops under the programme include rice, maize, cassava, and soybeans—key staples in Nigeria’s food system. The project will also strengthen agricultural research and extension services, while expanding farmers’ access to improved and climate-resilient seeds.

A major component of the initiative is the creation of a national digital farm and farmer registry, alongside digital advisory services that will provide farmers with localized weather and climate information to boost productivity and resilience.

In addition, the programme will reform seed and fertilizer systems, improve regulatory frameworks, and promote private sector participation in producing high-quality agricultural inputs. It will also encourage transparent land-based investments and ensure stronger monitoring and citizen engagement, with special attention to women and youth.

Speaking on the development, Mathew Verghis described the project as a transformative step that will unlock private sector-led growth and improve food and nutrition security nationwide.

The World Bank added that the project is expected to attract an additional $220 million in private investment and forms part of its broader Agriconnect initiative, which aims to shift smallholder farming from subsistence to commercially viable agribusiness.

Overall, the AGROW project is positioned to play a key role in boosting Nigeria’s agricultural productivity, strengthening rural economies, and improving livelihoods across the country.