World Bank set to approve $500m Agriculture loan for Nigeria

The World Bank plans to approve a new $500 million loan to Nigeria in March 2026. The money will be used to improve agriculture, increase food production, strengthen value chains, and create jobs in different states.

Details of the loan are in the World Bank’s Project Information Document for the Nigeria Sustainable Agricultural Value-Chains for Growth project, also known as AGROW. The approval date is expected to be March 30, 2026.

The entire $500 million will come from the International Development Association (IDA), which is the World Bank’s arm that gives low-interest loans to developing countries. The borrower is the Federal Republic of Nigeria. The project will be carried out by the Federal Ministry of Agriculture and Food Security and participating states.

The main goal of the project is to increase productivity among smallholder farmers and strengthen selected agricultural value chains in participating states.

The World Bank has already reviewed the project and authorised it for appraisal and negotiation. This means it has passed an important internal stage before final approval.

According to the World Bank, Nigeria faces serious challenges, including unemployment and food insecurity. Agriculture is the largest employer in the country. About one-third of Nigeria’s working population depends on agriculture for their livelihood, and around 21 million people work in primary agriculture.

Despite this, Nigeria still imports about $10 billion worth of food every year.

The AGROW project will follow a private sector-led approach, supported by the public sector. It aims to help small farmers produce more, connect them to reliable markets, and promote value addition.

The project also aligns with the Federal Government’s Renewed Hope Agenda and is designed to attract private investment.

The $500 million loan will focus on four main areas:

Integrating smallholder farmers into competitive value chains.

Modernising smallholder production through better seeds, research, extension services, and digital agriculture.

Strengthening policies and improving the environment for private investment, especially in seed and fertiliser markets.

Project coordination and monitoring.

The value chain component will help connect farmers with buyers and agribusinesses to reduce costs and improve supply reliability.

The production component will support improved farming methods, better seeds, research systems, and climate-resilient practices.

The policy component will address problems in seed and fertiliser markets and promote responsible land investments.

If approved, the new loan will increase Nigeria’s total debt to the World Bank.

Nigeria’s debt to the International Development Association rose by $1.9 billion in one year to reach $18.7 billion as of December 31, 2025. This was up from $16.8 billion at the end of 2024, representing an 11.3 per cent increase.

Nigeria is currently the third-largest borrower from the IDA, after Bangladesh and Pakistan.

As of June 30, 2025, Nigeria’s total external debt stood at $46.98 billion. Out of this, the World Bank Group accounted for $19.39 billion, which includes $18.04 billion from IDA and $1.35 billion from the International Bank for Reconstruction and Development.

This means the World Bank holds about 41.3 per cent of Nigeria’s external debt, making