The African Development Bank Group (AfDB) has approved a $200 million loan to Nigeria aimed at scaling up agricultural production, strengthening value chains, and reducing the country’s dependence on food imports.
The funding will support the second phase of the Federal Government’s National Agricultural Growth Scheme – Agro-Pocket (NAGS-AP), a flagship initiative designed to improve productivity and promote climate-smart agriculture across Nigeria.
Strengthening Nigeria’s Agricultural Sector
The new financing follows earlier support provided under the AfDB’s African Emergency Food Production Facility and will directly contribute to five strategic programmes under Nigeria’s National Agricultural Technology and Innovation Policy (NATIP).
These programmes focus on:
- Improving access to high-quality agricultural inputs
- Strengthening priority crop value chains
- Revitalising agricultural extension services
- Promoting digital and climate-smart farming technologies
- Enhancing agricultural data management systems
The initiative targets increased production of staple crops through the use of climate-resilient, high-yield seed varieties and fertiliser blends tailored to local soil conditions.
Wheat and Rice Production Targets
A key objective of the programme is to significantly reduce Nigeria’s food import bill by boosting domestic output.
The targets include:
- Increasing wheat production fivefold
- Raising rice production by 20 percent
- Expanding access to crop insurance to protect farmers against climate-related risks
The programme also aims to engage Nigerian youth in commercially oriented agriculture, helping transform the country’s growing youth population into a driver of agribusiness growth and rural economic development.
Phase One Delivered Strong Results
The first phase of NAGS-AP introduced an ICT-based agricultural input distribution system that delivered quality seeds, fertilisers, and pesticides to farmers through more than 600 agro-dealers nationwide.
During the 2023/2024 dry season, the programme supported the cultivation of 118,000 hectares of wheat, tripling national wheat production to an estimated 500,000 metric tons in 2024.
To date, approximately 650,000 smallholder farmers producing wheat, rice, cassava, maize, sorghum, and millet have benefited from the initiative.
Agriculture’s Role in Nigeria’s Economy
Agriculture remains a critical pillar of Nigeria’s economy, employing 38 percent of the workforce and contributing 25.2 percent to the country’s Gross Domestic Product (GDP). However, the sector continues to face structural challenges, including:
- Limited access to quality seeds and fertilisers
- Weak land tenure systems
- Low irrigation coverage
- Climate change impacts
- Soil degradation
Dr. Abdul Kamara, African Development Bank Director General for Nigeria, said the second phase builds on the strong results achieved under Phase One and will scale up access to digital tools and climate-smart technologies to improve productivity and resilience.
The four-year project is set to begin in March 2026 and aligns with AfDB President Sidi Ould Tah’s strategic vision of empowering youth and women while accelerating sustainable agricultural transformation across Africa.