The African Development Bank Group has approved a loan of $200 million for Nigeria to support the second phase of the Federal Government’s National Agricultural Growth Scheme–Agro-Pocket (NAGS-AP) across Nigeria. 

This approval was announced this week on the Bank’s website and is expected to boost productivity, strengthen agricultural value chains, and promote climate-smart, data-driven farming. 

The financing follows earlier support provided under the African Emergency Food Production Facility.

According to the Bank, the programme will implement five priority areas under the National Agricultural Technology and Innovation Policy. 

These focus on improving access to quality inputs, strengthening value chains for priority crops, revitalising extension services, promoting digital and climate-smart agriculture, and improving agricultural data management.

The funding is expected to increase staple crop production through climate-resistant, high-yield seed varieties and fertiliser blends adapted to local conditions as well as expand crop insurance coverage to protect farmers against climate-related losses.

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

The objective is to strengthen national food self-sufficiency and encourage youth participation in commercial agriculture.

Abdul Kamara, Director General of the Bank’s Nigeria Country Department, said the second phase builds on the results of Phase One.

He stated that the expansion of access to quality inputs, digital tools and climate-smart technologies would improve farmer productivity and resilience. 

He added that the programme would support efforts to reduce food imports and increase domestic production.

Phase One introduced an ICT-based system that delivered seeds, pesticides and fertiliser to farmers through more than 600 agro-dealers nationwide.

 It supported the cultivation of 118,000 hectares of wheat during the 2023/2024 dry season. 

National wheat output rose to an estimated 0.5 million metric tonnes in 2024, with about 650,000 smallholder farmers benefiting.

Agriculture employs about 38 per cent of Nigeria’s workforce and contributes 25.2 per cent to Gross Domestic Product. 

However, the sector continues to face low productivity due to limited access to quality inputs, inadequate irrigation, and climate-related challenges.

The four-year project is scheduled to begin in March. 

Source: News Diary