The African Development Bank Group has approved a $200 million loan to support climate-smart and technology-driven agriculture in Nigeria. This financing aligns with Nigeria’s strategic objective to strengthen food security, increase agricultural productivity, and modernize farming value chains.
The loan will fund the second phase of the Federal Government’s National Agricultural Growth Scheme, Agro-Pocket (NAGS-AP). The programme expands access to quality agricultural inputs, modern farming technologies, and data-driven practices nationwide. The Bank has positioned this facility as Sector Budget Support, intended to scale priority agricultural investments and accelerate climate-resilient farming systems across Nigeria.
This new financing builds on earlier interventions under the Bank’s African Emergency Food Production Facility, which was activated to help Nigeria respond to rising food insecurity pressures. The design reflects continuity in policy support and investment focus, aiming to translate lessons from the first phase into broader impact at scale.
According to the Bank’s statement, the financing will be deployed over a four-year period beginning in March 2026. The objective is to embed climate-smart agriculture into the mainstream of Nigeria’s farming sector. The policy intent is clear: to support systems that withstand climate variability, improve productivity, and strengthen the agricultural value chain in measurable ways.
The Bank emphasised that this second phase “draws directly from those lessons and successes to scale up impact even further.” It highlighted critical support areas that include expanded access to quality inputs, digital tools, and climate-smart technology. These interventions are expected to enhance the resilience and productivity of farming operations across multiple crop categories.
In its official commentary, the Bank noted that the programme will play a decisive role in reducing Nigeria’s dependence on food imports, increasing local production, and promoting inclusive growth across the agricultural sector.
The initiative will directly support five key components under Nigeria’s National Agricultural Technology and Innovation Policy framework. These components include improved access to essential agricultural inputs, strengthening of value chains for priority crops, revitalisation of extension services, expansion of digital agriculture applications, and enhancement of agricultural data systems for planning and decision-making.
Phase I of the National Agricultural Growth Scheme – Agro-Pocket delivered measurable operational outcomes. The earlier phase facilitated the distribution of certified seeds, fertilisers, and crop protection products through an ICT-based input distribution system. More than 600 agro-dealers nationwide supplied essential inputs to farmers, while wheat cultivation reached approximately 118,000 hectares during the 2023/2024 dry season. National wheat output tripled to an estimated 500,000 metric tons in 2024, and about 650,000 smallholder farmers benefitted across key staple crops.
These results provided the foundation for scaling up the programme under the newly approved second phase. The emphasis on climate resilience and technology adoption reflects a strategic shift towards quality and sustainability in agricultural investments.
Agriculture remains central to Nigeria’s economy, employing a significant portion of the workforce and contributing to gross domestic product. However, structural constraints such as limited access to improved inputs, weak land tenure systems, and ongoing climate stress persist. This loan is designed to address these constraints and align with broader national development and food security objectives.
In summary, this financing represents a targeted effort to modernise Nigeria’s agricultural sector through climate-responsive investments and technological integration.
