By Agrobroadcast Team
The African Development Bank Group has approved a $200 million loan to expand climate-resilient and technology-enabled farming across Nigeria, reinforcing efforts to strengthen food security and reduce dependence on imports.
In a statement announcing the approval, the Bank said the funding will support the second phase of the Federal Government’s National Agricultural Growth Scheme–Agro-Pocket (NAGS-AP). The programme is designed to widen farmers’ access to certified seeds, fertilisers, digital tools and climate-smart technologies, while improving agricultural value chains nationwide.
The four-year intervention, scheduled to commence in March 2026, will be delivered as Sector Budget Support. It builds on earlier financing under the Bank’s African Emergency Food Production Facility, which was introduced to cushion the impact of global food shocks.
According to the Bank, the second phase of NAGS-AP will scale priority investments aimed at raising productivity, strengthening value addition and promoting climate adaptation across key crops.
Abdul Kamara, Director General for Nigeria at the African Development Bank, said the new financing draws on lessons from the first phase of the programme to expand impact.
He explained that broadening access to quality inputs, digital platforms and climate-smart farming practices would enhance farmers’ productivity and resilience. The initiative, he added, is expected to contribute to lower food imports, stronger domestic production and more inclusive economic growth.
The Bank further noted that the programme aligns with Nigeria’s National Agricultural Technology and Innovation Policy. It will support five core pillars: improved access to farm inputs, strengthened commodity value chains, revitalised agricultural extension services, expansion of digital agriculture and improved data systems.
Performance of Phase I
The first phase of the National Agricultural Growth Scheme–Agro-Pocket recorded measurable gains through an ICT-driven input distribution system that connected farmers directly with suppliers.
Over 600 agro-dealers nationwide supplied certified seeds, fertilisers and crop protection products. During the 2023/2024 dry season, about 118,000 hectares of wheat were cultivated under the scheme.
National wheat output rose significantly, reaching an estimated 500,000 metric tonnes in 2024 nearly triple previous levels.
Approximately 650,000 smallholder farmers producing wheat, rice, cassava, maize, sorghum and millet benefited from the intervention.
These outcomes, the Bank said, provided the foundation for scaling up the programme with a sharper focus on climate resilience and technological adoption.
Sector challenges and new targets
Agriculture remains a critical pillar of Nigeria’s economy, accounting for roughly 38 per cent of employment and about a quarter of gross domestic product. However, structural bottlenecks continue to suppress productivity.
Limited access to improved inputs, weak land tenure systems, inadequate irrigation infrastructure, soil degradation and climate variability have constrained output and long-term investment.
Under the second phase, the programme targets a fivefold increase in wheat production and a 20 per cent rise in rice output, signalling a renewed push toward staple crop self-sufficiency.
The latest approval follows another major intervention by the Bank in November 2025, when it cleared a $500 million facility for Nigeria’s Economic Governance and Energy Transition Support Programme, underscoring sustained multilateral backing for reforms in agriculture and broader economic sectors.