World Bank Approves $500m to Fix Nigeria’s Agriculture

The World Bank has approved a $500m credit to repair Nigeria’s underperforming agricultural sector. This fresh injection of capital from the International Development Association targets the chronic low productivity that plagues smallholder farmers. Dubbed the AGROW project, the scheme aims to turn subsistence plots into commercially viable businesses. It arrives at a time of deep anxiety over food inflation and national nutrition security.

Nigeria remains a country where the majority work the land, but many go hungry. The bank notes that while agriculture is the nation’s largest employer, structural flaws keep it in a chokehold. Farmers struggle with poor seeds, bad roads, and a lack of proper storage. This new funding seeks to bridge the gap between the farm gate and the dining table. By strengthening market linkages, the project hopes to make food both more available and more affordable.

The money will flow through a results-based matching grant facility for agribusinesses. These firms must prove they are buying directly from smallholders to access the funds. Priority will go to staples like rice, maize, cassava, and soybeans. The goal is to move beyond simple harvesting into processing and post-harvest handling. This shift is essential if Nigeria wants to stop wasting a third of its produce before it ever reaches a market.

Innovation sits at the heart of this six-year programme. The government plans to build a national digital farm registry to track and support individual growers. Farmers will receive digital advice on weather patterns and climate-resilient techniques via their mobile phones. There is also a push to reform the messy regulatory systems governing seeds and fertilisers. Without quality inputs, even the most hardworking farmer is destined to fail.

The World Bank Country Director, Mathew Verghis, expects the project to reach one million farmers by 2032. He believes the credit will act as a magnet for a further $220m in private sector investment. This is a tall order for a sector often viewed as too risky by local banks. However, the focus on women and youth inclusion suggests a desire to modernize the workforce.

Nigeria’s dependence on the World Bank continues to grow alongside its debt profile. As of late 2025, the country owed the global lender nearly $20 billion. This accounts for over 40% of Nigeria’s total external debt. While the terms are concessional, the sheer volume of borrowing raises questions about long-term sustainability. The success of AGROW will be measured by whether these farmers can eventually stand on their own feet without foreign credit.