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.

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The African Development Bank (AfDB) has approved a $3.9 million, two-year technical assistance project to support Nigeria and 12 other African countries in implementing their national energy plans under the Mission 300 initiative, aimed at expanding electricity access across the continent by 2030.

The approval, granted by the AfDB Board of Directors, was disclosed in a statement published on the bank’s website on Friday. The project is designed to help participating countries translate existing energy policies and commitments into concrete electricity connections for households, businesses and public institutions.

The initiative comes amid renewed efforts by African governments and development partners to close the continent’s electricity access gap, which continues to hinder economic growth, industrialisation and social development. Despite significant policy reforms and investment pledges in recent years, millions of Africans remain without reliable access to power.

According to the AfDB, the new intervention—known as the Africa Energy Sector Technical Assistance Programme (AESTAP) Mission 300 Phase II—will provide hands-on technical support to 13 Mission 300 countries over the next 24 months. Beneficiary countries include Nigeria, Chad, Gabon, Tanzania, Mauritania, the Democratic Republic of Congo, Kenya, Madagascar, Ethiopia, Malawi, Lesotho, Namibia and Uganda.

Explaining the rationale behind the project, the bank said many countries have already developed National Energy Compacts outlining how they intend to expand electricity access, reform power sector institutions and attract private investment. However, moving from documented plans to actual electricity connections has remained a major challenge.

Wale Shonibare, Director of Energy Financial Solutions, Policy and Regulation at the AfDB, said African countries have made “bold commitments” through their Energy Compacts, but additional support is needed to turn those promises into real outcomes.

“The focus now is on delivery—ensuring that households, entrepreneurs and communities actually gain access to electricity,” Shonibare said. He noted that the new phase of support would provide targeted technical assistance to help governments implement reforms, strengthen institutions and accelerate new connections.

Under the approved project, AfDB will support participating countries to improve electricity regulations, planning frameworks and tariff structures to unlock public and private investment. The initiative will also focus on strengthening power utilities to improve operational efficiency, reduce technical and commercial losses, and deliver more reliable electricity services.

In addition, the project will support improved data collection, research and cross-country learning through platforms such as the Electricity Regulatory Index and regional energy forums. The bank said expert advisers would be embedded within national Compact Delivery and Monitoring Units to help governments coordinate reforms, track progress and resolve implementation bottlenecks.

Mission 300 was jointly launched by the World Bank and the African Development Bank in January 2025, with the goal of providing electricity access to 300 million Africans by 2030. As part of the initiative, African countries were encouraged to develop National Energy Compacts serving as roadmaps for power sector reforms and investment mobilisation.

Over the past year, dozens of countries have launched these compacts, backed by political commitments from governments and pledges of support from development partners. However, the AfDB acknowledged that weak institutional capacity, regulatory gaps and financing constraints have slowed implementation in many countries.

The newly approved Phase II project builds on an earlier AfDB intervention. In December 2025, the bank approved about $1 million for AESTAP Mission 300 Phase I, which focused on helping countries establish and operationalise Compact Delivery and Monitoring Units within government structures. Phase II is expected to deepen that support by providing the technical expertise required to implement planned reforms and scale up electricity connections.

Beyond Mission 300, the AfDB has continued to expand its financial support for Nigeria and the wider region. In November, the bank approved a $500 million loan to the Federal Government of Nigeria to finance the second phase of the Economic Governance and Energy Transition Support Programme. It also approved a $100 million loan to the Emerging Africa and Asia Infrastructure Fund to boost sustainable infrastructure development across Africa.

The AfDB said the Mission 300 Phase II project would be implemented in close coordination with the World Bank, national governments and other development partners to ensure alignment, maximise impact and avoid duplication of efforts.

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The gathering is expected to bring together top-level government officials, business leaders, civil society, development partners, and heads of state for a series of high-level engagements. Among the most anticipated agenda items is the election of a new president for the Bank, as the current president, Dr. Akinwumi Adesina, nears the end of his second and final term after a decade in office.

Prof. Vincent Nmehielle, AfDB Group’s Secretary General and Secretary to the Boards of Governors and Directors, confirmed the election and emphasized the significance of this year’s theme: “Making the Most of Africa’s Capital to Foster Its Development.”

Addressing journalists ahead of the meetings, Prof. Kevin Urama, the Bank’s Chief Economist and Vice President for Economic Governance, said the discussions will center on how Africa can better harness its fiscal resources, human capital, and natural wealth to chart a more autonomous development path—especially in the face of challenges like rising debt, climate pressures, and growing economic uncertainties.

Urama noted that four major knowledge events, alongside a presidential dialogue, would help develop actionable strategies around the core theme. “We’re focusing on practical ways to tap into what the continent already has to accelerate transformation and development from within,” he stated.

In addition, the Bank will release its flagship 2025 African Economic Outlook during the meetings. The report is expected to provide insights into shifting global trends, debt sustainability, and the tools African nations need to strengthen institutional capacity and finance their development goals more effectively.

With growing pressure on African economies to find local solutions amid tightening global financial conditions, the 2025 Annual Meetings are shaping up to be a pivotal moment for the future direction of the AfDB—and the continent.

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