The Board of Directors of the African Development Bank (AfDB) Group has approved a $200 million loan to scale up priority agricultural investments in Nigeria.
The AfDB announced this in a statement published on its website, noting that the financing will support the second phase of the Federal Government’s National Agricultural Growth Scheme–Agro-Pocket (NAGS-AP).
According to the statement, the programme is designed to boost productivity, strengthen value chains, and accelerate climate-smart, data-driven farming across the country.
The approval follows earlier financing provided under the Bank Group’s African Emergency Food Production Facility. The new funding will contribute to the implementation of five programmes under the National Agricultural Technology and Innovation Policy (NATIP).
These programmes focus on improving access to quality agricultural inputs, strengthening value chains for priority crops, revitalising extension services, promoting digital and climate-smart agriculture, and enhancing agrarian data management.
“The funding is expected to raise staple crop production through climate-resistant, high-yield seed varieties and fertiliser blends tailored to local conditions, while expanding crop insurance coverage to protect farmers from climate-related losses,” the statement said.
The AfDB added that the fund targets a fivefold increase in wheat production and a 20 per cent rise in rice output.
According to the statement, the intervention is expected to strengthen national food self-sufficiency while encouraging youth participation in commercial farming.
The statement quoted Abdul Kamara, Director General of the Bank’s Nigeria Country Department, as saying that the second phase builds on the strong results recorded under Phase One.
“Building on the strong results achieved under Phase One, this second phase draws directly from those lessons and successes to scale up impact even further. By expanding access to quality inputs, digital tools, and climate-smart technologies, we are supporting farmers to improve productivity and resilience. This programme will continue to play a critical role in reducing food imports, boosting local production, and advancing inclusive growth across the country,” Kamara said.
Phase One featured an ICT-based system that delivered quality seeds, pesticides, and fertiliser to farmers through more than 600 agro-dealers nationwide.
It also supported the cultivation of 118,000 hectares of wheat during the 2023/2024 dry season, tripling national wheat output to an estimated 0.5 million metric tonnes in 2024, with 650,000 smallholder farmers benefiting so far.
Agriculture employs about 38 per cent of Nigeria’s workforce and contributes 25.2 per cent to Gross Domestic Product. However, the sector has faced low productivity due to limited access to quality inputs, inadequate irrigation, and climate challenges.
The four-year project, scheduled to begin in March, aligns with the Bank Group’s strategic vision to empower young people and women.
