The World Bank has approved a $500 million credit for Nigeria to boost agricultural productivity and improve food security.

The funding, drawn from the International Development Association (IDA), will finance the Nigeria Sustainable Agricultural Value-Chains for Growth project, known as AGROW.

The six-year programme runs from 2026 to 2032.

The project targets one million smallholder farmers and will support key staple crops such as rice, maize, cassava and soybeans. Agribusinesses that commit to sourcing from smallholder farmers will receive matching grants, with funding directed at post-harvest handling, agro-processing and market access.

The programme will also expand access to improved seeds, strengthen agricultural research and extension services and introduce a national digital farm and farmer registry.

Farmers will have access to digital advisory tools, including weather and climate information.

World Bank Country Director for Nigeria, Mathew Verghis, said the initiative was designed to empower smallholder farmers, attract private investment, and strengthen food security.

The bank expects the project to draw an additional $220 million in private agribusiness investment.

Nigeria’s agricultural sector, despite being the country’s largest employer, has long struggled with low yields, weak market linkages and climate vulnerability — factors that have driven persistent food inflation.