Nigeria is getting fresh support from World Bank to fix one of the weakest links in its agricultural system, how food moves from farms to markets, as the World Bank approves a US$500 million credit targeting value chains and smallholder farmers.

The funding, under the Nigeria Sustainable Agricultural Value Chains for Growth Project, is aimed at improving productivity, but more importantly, fixing the gaps that keep farmers stuck at low output and poor earnings.

Despite being the country’s largest employer, agriculture continues to underperform. According to the World Bank, low productivity, limited access to quality inputs, climate shocks and weak market connections have held the sector back.

“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.”

The project will work through agribusinesses that buy directly from farmers, using a results-based funding model. It will focus on crops such as rice, maize, cassava and soybeans, while improving storage, processing and access to markets, areas where losses and inefficiencies are common.

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There is also a push to fix the basics. The programme includes plans to improve seed and fertiliser systems, expand access to climate-resilient inputs and introduce a national digital registry for farmers. Farmers are expected to receive advisory support, including weather and climate information, to improve decision-making.

“In addition, the project will improve seed and fertiliser regulatory systems, expand early-generation seed supply, enhance private sector production of high-quality seed and farmers’ access to quality fertiliser, and promote transparent and responsible land-based investments.”

For the World Bank, the shift is about making agriculture more commercially viable rather than subsistence-driven. Country Director, Mathew Verghis, said the project is expected to drive private investment while improving food security.

“AGROW is a transformative step for Nigeria’s agriculture, empowering smallholder farmers, unlocking private sector–led growth, and strengthening food security in a sustainable way.”

He added that up to one million farmers could benefit, alongside increased yields and stronger resilience to climate shocks.

The six-year project, expected to run until 2032, is also designed to attract additional private funding into the sector, with projections of about US$220 million in agribusiness investment.

Still, the intervention highlights a familiar pattern. Nigeria continues to rely on external financing to fund key development programmes. Data from the Debt Management Office shows the country’s exposure to the World Bank Group stood at US$19.54 billion as of September 2025, accounting for over 40 percent of total external debt.

The success of the programme will likely depend on whether it can do what similar interventions have struggled to achieve, turn funding into real improvements in productivity, income and food supply.

Meiza Nigeria