World Bank’s $5.79bn Financing Drive Targets Nigerian Agriculture, MSMEs

News in brief:

— The World Bank Group is mobilising up to $5.79 billion in private financing for Nigeria in fiscal year 2026 to boost agriculture, digital infrastructure and small businesses.

— The bank's AGROW project targets one million smallholder farmers, while the FINCLUDE programme could support more than 250,000 micro, small and medium enterprises.

The World Bank Group is working to mobilise up to $5.79 billion in private financing for Nigeria in fiscal year 2026. This investment targets agricultural productivity, small-business growth and digital infrastructure.

The funding combines policy reforms, development projects and private-sector investment from the World Bank, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). The institutions use different tools to improve the investment environment, structure financing and reduce risks that may discourage investors.

For Nigeria’s agricultural sector, the strategy centres on addressing constraints that limit farmers’ productivity and incomes, including access to quality seeds, affordable fertiliser, digital services and reliable markets.

AGROW Targets One Million Smallholder Farmers

The World Bank Group’s AgriConnect approach links public-sector reforms and investment platforms with IFC financing to strengthen agricultural value chains. A key component is the Agricultural Value Chains for Growth (AGROW) Project, which targets one million smallholder farmers, including women and young people.

The project could improve seed and fertiliser systems, strengthen digital platforms, increase transparency and expand farmers’ access to markets.

AGROW aims to mobilise approximately $220 million from agribusiness firms and another $22 million from certified seed producers.

The investment targets reflect an effort to improve the systems connecting agricultural production to input suppliers, markets and agribusinesses.

However, the scale of the expected impact will depend on how effectively these interventions reach farmers and translate into improved access to inputs, markets and income-generating opportunities.

Fertiliser Investments to Improve Domestic Supply

According to the programme details, IFC helped mobilise $1.02 billion for Dangote Industries Limited through refinancing and financing from development institutions and commercial lenders. It also mobilised $282.5 million for Indorama Fertilizer through syndicated financing.

Together, the two projects have an aggregate production capacity of 6.8 million metric tonnes annually and are expected to improve access to fertiliser for more than 10 million smallholder farmers.

Expanding domestic production could reduce Nigeria’s reliance on imported fertiliser and help strengthen the supply of a critical agricultural input. However, its impact on farmers will also depend on affordability, distribution and access, particularly for smallholders operating with limited working capital.

MSME Programme Targets 850,000 Jobs

Beyond agriculture, the World Bank Group’s Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) programme is designed to expand access to finance for more than 250,000 micro, small and medium enterprises in sectors with strong job-creation potential.

The programme includes a $500 million financing package from the International Bank for Reconstruction and Development and the International Development Association. It combines financing and risk-sharing mechanisms to encourage financial institutions and other investors to provide additional capital to businesses that remain underserved.

FINCLUDE is expected to mobilise nearly $1.89 billion in private financing and support an estimated 850,000 direct and indirect jobs. Women-led businesses are targeted to receive 30 per cent of the financing.