Funding to power second phase of NAGS-AP, targeting higher yields, digital farming tools, and stronger value chains nationwide….
The African Development Bank Group has approved a $200 million loan to support climate-smart and technology-driven agriculture in Nigeria, marking a major boost to the country’s push for food security and improved farm productivity.
The financing, disclosed in a statement by the Bank, will fund the second phase of the Federal Government’s National Agricultural Growth Scheme – Agro-Pocket (NAGS-AP). The programme is designed to expand farmers’ access to quality inputs, modern technology, and data-driven agricultural practices across the country.
Structured as Sector Budget Support, the loan builds on previous interventions under the Bank’s African Emergency Food Production Facility. It aims to scale priority investments, strengthen agricultural value chains, and accelerate the transition to climate-resilient farming systems.
The four-year project is scheduled to commence in March 2026.
Scaling What Worked
According to the Bank, the second phase draws directly from lessons learned during the first rollout of NAGS-AP, which leveraged digital platforms to distribute inputs more efficiently and transparently.
“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.
Kamara noted that the programme is expected to help reduce food imports, boost local production, and drive inclusive growth across Nigeria’s rural economy.
The initiative will align with five key pillars under Nigeria’s National Agricultural Technology and Innovation Policy framework, focusing on improved input access, stronger value chains, revitalised extension services, digital agriculture systems, and enhanced agricultural data infrastructure.
Building on Phase I Gains
The first phase of NAGS-AP delivered measurable outcomes through an ICT-based input distribution system that connected farmers directly to certified suppliers.
More than 600 agro-dealers nationwide supplied improved seeds, fertilisers, and crop protection products under the scheme. During the 2023/2024 dry season, about 118,000 hectares of wheat were cultivated, contributing to a tripling of national wheat output to approximately 500,000 metric tons in 2024.
An estimated 650,000 smallholder farmers growing wheat, rice, cassava, maize, sorghum, and millet benefited from the intervention.
These results laid the groundwork for expanding the programme under a second phase with a stronger emphasis on climate adaptation and digital integration.
Tackling Structural Constraints
Agriculture remains a cornerstone of Nigeria’s economy, employing roughly 38 per cent of the workforce and contributing about a quarter of gross domestic product. Despite its importance, the sector continues to grapple with longstanding structural challenges.
Limited access to improved inputs has constrained yields, while weak land tenure systems and low irrigation coverage hinder investment and output stability. Climate stress, soil degradation, and erratic rainfall patterns further disrupt production cycles.
The newly approved project aims to address these bottlenecks, targeting a fivefold increase in wheat output and a 20 per cent rise in rice production as part of broader food security objectives.
The $200 million approval adds to the Bank’s expanding support for Nigeria. In November 2025, the AfDB approved a $500 million loan to back the second phase of the Economic Governance and Energy Transition Support Programme, underscoring its broader engagement in strengthening Nigeria’s economic resilience.
With the latest financing, the focus shifts to equipping farmers with the tools, technology, and resilience needed to feed a growing population while adapting to a changing climate.
