AfDB approves US$200M to scale Nigeria’s agri-production
Phase one supported the cultivation of 118,000 hectares of wheat in the 2023/2024 dry season, tripling national wheat output to an estimated 0.5 mmt.
NIGERIA – The board of the African Development Bank Group (AfDB) has approved a US$200 million loan to finance the scale-up of Nigeria’s agricultural systems under the second phase of the Federal Government’s National Agricultural Growth Scheme – Agro-Pocket (NAGS-AP).
The financing is expected to strengthen input delivery, expand digital agriculture tools, and deepen value chain development across priority crops.
According to a statement published on the Bank’s website, the approval follows earlier sector budget support provided under the African Emergency Food Production Facility.
The new funding will contribute directly to five programmes under Nigeria’s National Agricultural Technology and Innovation Policy (NATIP), with a focus on access to high-quality inputs, revitalised extension services, climate-smart agriculture, and improved agricultural data systems.
Abdul Kamara, Director General of the AfDB for Nigeria, said the second phase of NAGS-AP will expand access to quality inputs, digital tools, and climate-smart technologies for local farmers.
“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,” he said.
Building on wheat gains
Phase one of the programme introduced an ICT-based system that enabled the distribution of certified seeds, fertilisers, and crop protection products through more than 600 agro-dealers nationwide.
The system was designed to reduce leakages, improve traceability, and connect verified farmers directly to suppliers.
Kamara noted that Phase one also supported the cultivation of 118,000 hectares of wheat in the 2023/2024 dry season, tripling national wheat output to an estimated 0.5 million metric tons in 2024.
“In total, 650,000 smallholder farmers of wheat, rice, cassava, maize, sorghum, and millet have benefited to date,” he added.
Nigeria remains heavily dependent on wheat imports, with annual demand estimated at 5–6 million metric tons, according to industry and government data.
Domestic production has historically covered less than 10 percent of consumption, largely due to limited irrigation and low-yielding varieties. The expansion of dry-season wheat under irrigation is part of a broader strategy to reduce pressure on foreign exchange and improve food security.
Addressing structural productivity gaps
Agriculture employs about 38 percent of Nigeria’s working population and contributes 25.2 percent to gross domestic product.
However, productivity remains constrained by limited access to improved seeds and fertilisers, weak extension systems, insecure land tenure, soil degradation, and climate variability.
Post-harvest losses across grains and perishables also remain high due to inadequate storage and logistics infrastructure.
The four-year project, scheduled to begin in March 2026, is designed to address these structural gaps.
The AfDB indicated that the programme will promote climate-resilient production systems, digital farmer registries, and data-driven decision-making to improve transparency and efficiency in input allocation.
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