AfDB approves $200 million to boost agricultural production

The board of the African Development Bank Group (AfDB) has approved a $200 million loan to finance the scale-up of Nigeria’s agricultural systems, under the second phase of the Federal Government of Nigeria’s National Agricultural Growth Scheme – Agro-Pocket (NAGS-AP).

The new approval follows an earlier approval of financing for sector budget support under the Bank Group’s African Emergency Food Production Facility. It will contribute directly to the implementation of five programmes under the National Agricultural Technology and Innovation Policy (NATIP).

Read also: Ex-AfDB chief launches investment platform to drive capital to Africa

According to a statement on the Bank’s website, the funding will provide access to high-quality agricultural inputs, strengthen value chains for priority crops, revitalise extension services, promote digital and climate-smart agriculture, and enhance agricultural data management.

Abdul Kamara, Director General of the AfDB for Nigeria, said the second phase of the 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. 

Kamara noted that phase one of the programme featured the successful rollout of an ICT‑based system that delivered quality seeds, pesticides and fertiliser to farmers via 600-plus agro‑dealers nationwide. 

Read also: Ex-AfDB chief launches investment platform to drive capital to Africa

Adding 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.”

Agriculture employs 38 percent of Nigeria’s working population and generates 25.2 percent of the country’s gross domestic product (GDP), but the sector suffers from low productivity because of limited access to high-quality seeds and fertilisers, inadequate land tenure systems, low levels of irrigation, climate breakdown and soil degradation.

The project, which will be implemented over four years beginning in March 2026, aligns with Sidi Ould Tah’s, AfDB’s president, Four Cardinal Points strategic vision for Africa by empowering young people and women through technology and financial support.