AfDB Grants Nigeria New $200 Million Loan to Finance Phase 2 of Agricultural Scheme

News in brief:

-AfDB approves $200 million loan to scale up Nigeria’s National Agricultural Growth Scheme under Phase Two.

-Project targets increased wheat and rice production, expanded input access and climate-smart agriculture adoption.

The Board of Directors of the African Development Bank (AfDB) Group has approved a $200 million loan to support Nigeria’s agricultural sector under the second phase of the National Agricultural Growth Scheme–Agro-Pocket (NAGS-AP).

According to the bank, the funding will scale up key agricultural investments aimed at improving productivity, strengthening value chains and promoting climate-smart, data-driven farming practices nationwide.

Support for National Agricultural Policy

The loan will directly finance five programmes under Nigeria’s National Agricultural Technology and Innovation Policy. The approval follows earlier support provided through the African Emergency Food Production Facility.

The programmes focus on improving access to quality agricultural inputs, strengthening value chains for priority crops, revitalising extension services, promoting digital and climate-smart agriculture, and enhancing agricultural data management systems.

The intervention prioritises increasing staple crop production by expanding farmers’ access to climate-resilient, high-yield seed varieties and locally suitable fertiliser blends. It will also broaden crop insurance coverage to mitigate climate-related risks.

Production Targets and Youth Inclusion

Under the new phase, wheat production is projected to increase fivefold, while rice output is expected to rise by 20 per cent to advance national food self-sufficiency.

The project also aims to encourage young Nigerians to expand cultivated land and adopt more commercially oriented farming practices.

Director General of the African Development Bank for Nigeria, Dr Abdul Kamara, said the second phase builds on achievements recorded under the first phase of the programme.

“Building on the strong results achieved under Phase One, this second phase draws directly from those lessons and successes to scale up impact even further,” Kamara said.

He added that expanded access to quality inputs, digital tools and climate-smart technologies would improve farmer productivity and resilience while reducing food imports and supporting inclusive economic growth.

Phase One Achievements

During the first phase, an ICT-based system facilitated the distribution of seeds, fertilisers and pesticides through more than 600 agro-dealers nationwide. The initiative also supported the cultivation of 118,000 hectares of wheat during the 2023/2024 dry season, increasing national wheat output to an estimated 0.5 million metric tonnes in 2024.

About 650,000 smallholder farmers producing wheat, rice, cassava, maize, sorghum and millet benefited from the first phase.

Agriculture employs about 38 per cent of Nigeria’s workforce and contributes 25.2 per cent to its Gross Domestic Product (GDP). However, the sector continues to face constraints including limited access to quality inputs, weak land tenure systems, inadequate irrigation, climate change impacts and soil degradation.

The four-year Phase Two project is scheduled to commence in March 2026. The bank said the initiative aligns with its broader strategy to empower young people and women through improved access to technology and financial support.