The project is designed to improve farm productivity, strengthen value chains, and create jobs, while helping to stabilise food supply in Africa’s most populous nation.
Agriculture remains central to Nigeria’s economy, contributing about a quarter of gross domestic product and employing roughly half of the workforce.
Yet the sector has struggled for years with low yields, weak infrastructure, climate shocks, and limited access to finance, leaving many smallholder farmers stuck in subsistence production.
The AGROW programme aims to shift that model by linking farmers more directly to markets and private sector buyers.
It will provide matching grants to agribusinesses that source produce from smallholder farmers, with a focus on processing, storage, and market access.
Key crops targeted under the initiative include rice, maize, cassava and soybeans, staples that are critical to both food security and industrial use.
Beyond financing, the programme will invest in research and extension services, expand access to climate-resilient seeds, and introduce a national digital registry for farms and farmers.
Authorities say the digital system will help improve planning, input distribution, and access to advisory services, including weather information.
The project will also seek to improve regulation of seeds and fertilisers, while encouraging private sector participation in input supply and land-based investments.
“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,” said Mathew Verghis, the World Bank’s country director for Nigeria.
He added that the initiative is expected to benefit up to one million farmers and attract significant private capital into the sector.
The World Bank estimates the programme could mobilise an additional $220 million in private investment over its lifetime.
The new funding comes amid broader efforts by the Nigerian government to revive agriculture as a driver of growth and reduce reliance on food imports.
In recent months, authorities have launched complementary initiatives, including irrigation expansion projects aimed at improving year-round farming.
However, investment in the sector remains relatively low. Nigeria allocated less than 2% of its 2025 budget to agriculture, far below the 10% target agreed by African countries under the Maputo Declaration.
Past interventions such as the Commercial Agriculture Credit Scheme and the Anchor Borrowers’ Programme have sought to improve access to finance and boost domestic production, but structural challenges persist.
With rising food prices and pressure on household incomes, the success of AGROW will be closely watched as a test of whether Nigeria can translate policy support and external funding into tangible gains for farmers and consumers.
By Ayodeji Adegboyega, Business Insider Africa
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