AfDB Grants Nigeria New $200 Million Loan to Support Wheat, Rice Farmers
- The AfDB has approved a $200 million loan for Nigeria’s agricultural sector under NAGS-AP Phase 2
- The funding will support programmes under the National Agricultural Technology and Innovation Policy
- The four-year project will begin in March 2026 and focus on climate-smart and technology-driven farming
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Board of Directors of the African Development Bank Group has approved a $200 million loan to support Nigeria’s agricultural sector under the second phase of the National Agricultural Growth Scheme–Agro-Pocket (NAGS-AP).
Source: Getty Images
According to a statement from the Bank, the funding will help scale up key agricultural investments aimed at improving productivity, strengthening value chains, and promoting climate-smart, data-driven farming practices across the country.
The approval follows an earlier financing package provided under the African Emergency Food Production Facility. The new loan will directly support the implementation of five programmes outlined in Nigeria’s National Agricultural Technology and Innovation Policy (NATIP).
Programme to help farmers access inputs
The programmes focus on improving access to quality agricultural inputs, strengthening value chains for priority crops, revitalising extension services, promoting digital and climate-smart agriculture, and improving agricultural data management systems.
The Bank said the intervention will prioritise raising staple crop production by increasing farmers’ access to climate-resilient, high-yield seed varieties and fertiliser blends suited to local conditions. It also plans to expand crop insurance coverage to shield farmers from climate-related risks.
As part of its targets, the project aims to increase wheat production fivefold and raise rice output by 20% to support national food self-sufficiency. It also seeks to encourage young Nigerians to expand cultivated land and adopt more commercially oriented farming practices.
AfDB hails first phase of programme
Dr Abdul Kamara, Director General of the African Development Bank for Nigeria, said the second phase builds on the outcomes recorded under Phase One of the programme.
“Building on the strong results achieved under Phase 1, this second phase draws directly from those lessons and successes to scale up impact even further,” Kamara said.
He added that expanding access to quality inputs, digital tools, and climate-smart technologies would help farmers improve productivity and resilience, while contributing to lower food imports and inclusive economic growth.
Under Phase One, the programme introduced an ICT-based system that enabled the distribution of seeds, fertilisers and pesticides through more than 600 agro-dealers nationwide.
The first phase also supported the cultivation of 118,000 hectares of wheat during the 2023/2024 dry season, increasing national wheat output to an estimated 0.5 million metric tonnes in 2024. In total, about 650,000 smallholder farmers producing wheat, rice, cassava, maize, sorghum and millet have benefited from the initiative so far.
Agriculture remains a major pillar of Nigeria’s economy, employing about 38% of the workforce and contributing 25.2% to the country’s Gross Domestic Product (GDP).
Source: Getty Images
However, the sector continues to face challenges, including limited access to quality inputs, weak land tenure systems, inadequate irrigation, climate change impacts and soil degradation.
The four-year project is scheduled to begin in March 2026. The Bank noted that the initiative aligns with its broader strategy to empower young people and women across Africa through improved access to technology and financial support.
FarmerMoni: FG opens portal for interest-free loans
Legit.ng earlier reported that the Federal Government of Nigeria is providing interest-free loans to 22,000 eligible farmers for improved agricultural productivity.
Farmers can secure up to N300,000 without collateral through FarmerMoni, which promotes economic stability in rural areas of the country.
The credit scheme, which is being implemented under the Renewed Hope GEEP 3.0, is aimed at enhancing food security and reducing poverty through financial inclusion and support for agriculture.
Source: Legit.ng
