Key Takeaways
- The African Development Bank has approved a $200 million loan to enhance agricultural investments in Nigeria.
- The funding will support the second phase of the National Agricultural Growth Scheme–Agro-Pocket to increase productivity and food self-sufficiency.
- The initiative aims to boost wheat and rice production while promoting climate-smart farming and youth involvement in agriculture.
AfDB Approves $200 Million Loan for Nigerian Agriculture
The African Development Bank (AfDB) Group has granted a $200 million loan to Nigeria to expand agricultural investments. This funding supports the second phase of the Federal Government’s National Agricultural Growth Scheme–Agro-Pocket (NAGS-AP), focusing on enhancing productivity and strengthening value chains through climate-smart practices.
The financing follows earlier support from the AfDB’s African Emergency Food Production Facility. It will aid the implementation of five critical programs under the National Agricultural Technology and Innovation Policy (NATIP). These programs aim to improve access to quality agricultural inputs, enhance value chains for key crops, renew extension services, promote digital agriculture, and improve agricultural data management.
This initiative is expected to boost staple crop production by utilizing climate-resilient, high-yield seed varieties and customized fertilizer blends, while also expanding crop insurance to safeguard farmers against climate-related losses. It aims for a fivefold increase in wheat production and a 20% rise in rice output, contributing to national food self-sufficiency and encouraging youth participation in commercial farming.
Abdul Kamara, Director General of the Bank’s Nigeria Country Department, stated that the second phase builds on earlier successes, enhancing access to quality inputs and digital technologies for farmers. He emphasized that this program is vital for reducing food imports, increasing local production, and fostering inclusive growth across Nigeria.
Previously, Phase One of the project employed an ICT-based system that supplied quality seeds, pesticides, and fertilizers to farmers via over 600 agro-dealers nationwide. It facilitated 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 tonnes, benefiting around 650,000 smallholder farmers.
Agriculture, which employs approximately 38% of Nigeria’s workforce and contributes 25.2% to the Gross Domestic Product, faces challenges such as low productivity due to limited access to quality inputs, inadequate irrigation, and climate-related issues. The four-year project, set to begin in March, is aligned with the AfDB’s strategic vision to empower young people and women through technology and financial support.
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