World Bank Approves $500m Credit for AGROW Project to Boost Smallholder Farming

News in Brief

-The World Bank approved a $500 million credit for the AGROW project to enhance smallholder farmer productivity and value chains in the country

-It is expected to benefit one million farmers over six years, attract $220 million in private investment, and improve seeds, digital services, and regulations.

The World Bank has approved a $500 million International Development Association (IDA) credit for the Nigeria Sustainable Agricultural Value Chains for Growth Project (AGROW).

The funding, which was approved on Monday, March 30, 2026, will power AGROW's six-year initiative, targeting smallholder farmers, key crop value chains, and national food security.  The project, running from 2026 to 2032, aims to boost productivity, strengthen market linkages, create jobs, and transition subsistence farming in the country into commercially viable agribusinesses.

“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,” a World Bank statement revealed. The funding will address these persistent challenges in Nigeria's agriculture sector.

Key Components of AGROW Project

The World Bank further stated that the AGROW project will provide results-based matching grants to agribusinesses sourcing produce from smallholder farmers, focusing on aggregation, post-harvest handling, agro-processing, and market access for priority crops like rice, maize, cassava, and soybeans. It will also enhance agricultural research and extension services, expand access to climate-resilient seeds, and establish a national digital farm and farmer registry.

Farmers stand to gain from digital advisory services, including localised weather and climate information to build resilience and improve yields. Additionally, the programme will reform seed and fertiliser regulatory systems, boost early-generation seed supply, enhance private sector input production, and promote transparent land investments.

Strong coordination, monitoring, and citizen engagement mechanisms will ensure inclusion of women and youth, aligning with Nigeria's priorities for productivity, job creation, and value addition.

Expert Insights and Expected Impact

World Bank Country Director for Nigeria, Mathew Verghis, described AGROW as “a transformative step for Nigeria’s agriculture, empowering smallholder farmers, unlocking private sector–led growth, and strengthening food security sustainably.” 

He explained that the project will 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 the participating states across Nigeria,” he added

He also projected the project to attract an additional $220 million in private agribusiness investment, amplifying its reach beyond the initial credit. By tackling structural bottlenecks, AGROW supports Nigeria's broader efforts to combat food insecurity and foster rural economic growth amid rising commodity prices and climate vulnerabilities.