Nigeria Secures $200m AfDB Loan to Boost Wheat, Rice Output
Nigeria has secured a $200 million loan from the African Development Bank Group to scale up agricultural productivity, in a major push to strengthen food security, cut imports and expand climate-smart farming.
The facility, approved by the Bank’s Board of Directors, will fund the second phase of the Federal Government’s National Agricultural Growth Scheme–Agro-Pocket (NAGS-AP), building on earlier support under the African Emergency Food Production Facility.
The programme is designed to raise staple crop production through climate-resistant, high-yield seed varieties and fertiliser blends tailored to local conditions, while expanding crop insurance to protect farmers against climate-related losses.
Crucially, the intervention targets a fivefold increase in wheat production and a 20 per cent rise in rice output — two commodities central to Nigeria’s food import bill. The broader objective is to enhance national food self-sufficiency and encourage youth participation in commercial agriculture.
According to the Bank, the financing will also advance five programmes under the National Agricultural Technology and Innovation Policy (NATIP), focusing on improved access to quality inputs, stronger value chains, revitalised extension services, digital and climate-smart agriculture, and enhanced agricultural data management.
Abdul Kamara, Director General of the Bank’s Nigeria Country Department, said the second phase builds directly on the gains recorded under Phase One.
“By expanding access to quality inputs, digital tools and climate-smart technologies, 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,” he said.
Phase One deployed an ICT-based input distribution system through more than 600 agro-dealers nationwide and supported the cultivation of 118,000 hectares of wheat during the 2023/2024 dry season. That effort tripled national wheat output to an estimated 0.5 million metric tonnes in 2024 and benefited about 650,000 smallholder farmers.
Agriculture employs roughly 38 per cent of Nigeria’s workforce and contributes 25.2 per cent to Gross Domestic Product, yet the sector continues to grapple with low productivity driven by limited access to quality inputs, weak irrigation infrastructure and climate vulnerabilities.
The four-year project, scheduled to commence in March, aligns with Nigeria’s broader drive to strengthen food security, stabilise prices and channel investment into technology-driven, climate-resilient farming systems.
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