The African Development Bank (AfDB) has approved a $200 million loan to support climate-smart and technology-driven agriculture in Nigeria, reinforcing efforts to enhance food security, raise productivity, and strengthen agricultural value chains.
The financing will fund the second phase of the Federal Government’s National Agricultural Growth Scheme – Agro-Pocket (NAGS-AP), a flagship programme aimed at expanding farmers’ access to quality inputs, digital tools, and modern farming technologies nationwide.
Strengthening Climate-Resilient Agriculture
According to the Bank, the loan is structured as Sector Budget Support and builds on earlier interventions under the African Emergency Food Production Facility. The new phase is designed to scale priority investments and accelerate the adoption of climate-resilient agricultural systems across Nigeria.
The four-year programme is scheduled to commence in March 2026.
Abdul Kamara, Director General of the African Development Bank for Nigeria, stated that the second phase draws from the successes of the initial rollout to deepen impact.
“This second phase builds directly on lessons learned to expand scale and effectiveness,” Kamara said. “By widening access to quality farm inputs, digital solutions, and climate-smart technologies, we are helping farmers improve productivity and resilience. The programme will continue to reduce food imports, increase domestic output, and promote inclusive economic growth.”
The initiative will support five strategic programmes under Nigeria’s National Agricultural Technology and Innovation Policy framework, including improved access to farm inputs, stronger agricultural value chains, revitalised extension services, expanded digital agriculture systems, and enhanced data management platforms.
Results from Phase I
The newly approved financing follows measurable gains recorded under the first phase of the National Agricultural Growth Scheme.
Phase I deployed an ICT-enabled input distribution platform that connected farmers with over 600 agro-dealers nationwide, providing certified seeds, fertilisers, and crop protection products.
Key outcomes included:
- Cultivation of approximately 118,000 hectares of wheat during the 2023/2024 dry season
- Tripling of national wheat production to an estimated 500,000 metric tons in 2024
- Direct support to about 650,000 smallholder farmers producing wheat, rice, cassava, maize, sorghum, and millet
These results laid the groundwork for scaling up the programme with stronger emphasis on climate resilience and technology adoption.
Addressing Structural Challenges
Agriculture remains a cornerstone of Nigeria’s economy, employing roughly 38 per cent of the workforce and contributing about one-quarter of gross domestic product. Despite its significance, the sector continues to grapple with structural bottlenecks.
Persistent constraints include limited access to improved seeds and fertilisers, weak land tenure systems, inadequate irrigation infrastructure, climate variability, and soil degradation. These factors have collectively suppressed productivity and reduced competitiveness.
The second phase of the NAGS-AP programme aims to deliver a fivefold increase in wheat production and boost rice output by 20 per cent, further reducing Nigeria’s dependence on food imports.
Broader Reform Context
The latest approval follows a $500 million loan granted by AfDB in November 2025 to support Nigeria’s Economic Governance and Energy Transition Support Programme, underscoring the Bank’s broader engagement in structural reforms and sectoral transformation.
With the new $200 million facility, Nigeria’s push toward climate-smart, data-driven agriculture is expected to gain momentum, positioning the sector for improved resilience, higher productivity, and sustainable growth over the coming years.
