AfDB approves US$200M loan for Nigeria’s agricultural expansion

NIGERIA – The African Development Bank Group has approved a US$200 million loan to support the second phase of Nigeria’s National Agricultural Growth Scheme Agro-Pocket.

The programme seeks to raise farm output, improve value chains, and expand the use of climate-smart and data-based farming across the country.

The funding will back five priority programmes under Nigeria’s National Agricultural Technology and Innovation Policy. These include access to quality farm inputs, stronger value chains, better extension services, digital and climate-smart agriculture, and improved farm data systems.

The programme aims to raise staple crop production by promoting climate-resistant and high-yield seed varieties, along with suitable fertiliser blends. It also plans to widen access to crop insurance so farmers can manage losses linked to climate risks.

Officials expect the scheme to increase wheat production fivefold and lift rice output by 20 percent to reduce food imports and improve food supply.

“Phase 2 builds on lessons from the first phase. We will improve access to quality inputs, digital tools, and climate-smart technologies to boost productivity and strengthen local production,” said Dr Abdul Kamara, Director General of the Bank for Nigeria.

He added that the programme will also support young people and women by linking them to finance and modern farming methods.

Building on phase 1 results

The first phase, financed under the Bank’s African Emergency Food Production Facility, introduced an ICT-based system that delivered seeds, fertilisers, and pesticides through more than 600 agro-dealers nationwide.

The programme supported the cultivation of 118,000 hectares of wheat during the 2023 to 2024 dry season and raised national wheat output to about 0.5 million metric tons. Around 650,000 smallholder farmers growing wheat, rice, cassava, maize, sorghum, and millet benefited from the scheme.

Agriculture remains central to Nigeria’s economy. The sector employs 38 percent of the workforce and contributes 25.2 percent of gross domestic product. However, farmers still face low productivity due to limited access to quality inputs, low irrigation coverage, climate pressure, land tenure issues, and soil damage.

The four-year second phase will begin in March 2026. “We want to support farmers with practical tools that raise yields and incomes while strengthening food security,” Kamara said.

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