The African Development Bank Group has approved a $200 million loan to Nigeria to support climate-smart and technology-driven agriculture.

The approval was disclosed in a statement by the Bank.

The financing aims to strengthen food security, boost productivity, and improve agricultural value chains.

The loan will fund the second phase of the Federal Government’s National Agricultural Growth Scheme – Agro-Pocket.

It will expand nationwide access to quality inputs, modern technology, and data-driven farming practices.

The loan is structured as Sector Budget Support and builds on earlier interventions under the Bank’s African Emergency Food Production Facility.

It seeks to scale priority agricultural investments and accelerate climate-resilient farming systems across the country.

The project is expected to run for four years, beginning in March 2026.

The financing will help scale up agricultural investments that enhance productivity and deepen value addition across priority crops.

The second phase draws on lessons from the first phase to expand impact at scale.

“This second phase draws directly from those lessons and successes to scale up impact even further,” said Abdul Kamara, Director General for Nigeria at the African Development Bank.

“By expanding access to quality inputs, digital tools, and climate‑smart technologies, we are supporting farmers to improve productivity and resilience,” he added.

“This programme will continue to play a critical role in reducing food imports, boosting local production, and advancing inclusive growth across the country.”

The initiative will directly support five key programmes under Nigeria’s National Agricultural Technology and Innovation Policy framework.

These target improved input access, stronger value chains, revitalised extension services, digital agriculture, and enhanced data systems.

The new loan builds on earlier support from the Bank’s African Emergency Food Production Facility, which addressed rising food insecurity.

Phase I of the National Agricultural Growth Scheme – Agro-Pocket delivered results through an ICT-based input distribution system.

More than 600 agro-dealers nationwide supplied certified seeds, fertilisers, and crop protection products to farmers.

About 118,000 hectares of wheat were cultivated during the 2023/2024 dry season under the scheme.

National wheat output tripled to an estimated 500,000 metric tons in 2024.

Approximately 650,000 smallholder farmers producing wheat, rice, cassava, maize, sorghum, and millet benefited from the first phase.

These outcomes form the foundation for scaling up the programme in the second phase, with greater emphasis on climate resilience and technology adoption.

Agriculture remains central to Nigeria’s economy, employing roughly 38 per cent of the workforce and contributing about a quarter of gross domestic product.

The sector faces structural constraints that limit productivity and competitiveness.

Limited access to improved seeds and fertilisers has constrained yields.

Weak land tenure systems and low irrigation coverage affect long-term investment and output stability.

Climate stress and soil degradation continue to disrupt production cycles.

The new project targets a fivefold increase in wheat output and a 20 per cent rise in rice production.

In November 2025, the AfDB approved a $500 million loan to the Federal Government of Nigeria to finance the second phase of the Economic Governance and Energy Transition Support Programme.