Farmers in Lagos State have welcomed the proposed $500 million loan by the World Bank to Nigeria’s agricultural sector, while urging authorities to ensure transparency and proper implementation.
The World Bank is expected to approve the loan in March 2026, with the funds aimed at boosting food production, strengthening value chains and creating jobs across participating states. The financing will come from the International Development Association (IDA), the World Bank’s concessional lending arm for developing countries.
With the Federal Government as borrower, the project will be implemented by the Federal Ministry of Agriculture and Food Security in collaboration with participating states.
Reacting to the development, the Acting Chairman of the All Farmers Association of Nigeria (AFAN), Lagos State Chapter, Mr. Shakin Agbayewa, described the loan as timely, especially given rising inflation and the high cost of accessing credit locally.
He, however, stressed that effective execution remains critical.
“We are excited about the proposed loan. With inflation and the cost of loans in Nigeria, this intervention is coming at the right time. But our major concern is implementation,” he said.
Agbayewa noted that if properly disbursed, the loan could significantly enhance agricultural productivity, covering inputs, logistics, processing and value addition.
He urged authorities to channel disbursement through AFAN’s existing structure, which spans national, state, zonal and local government levels, to ensure the funds reach genuine farmers across various commodity groups.
According to him, Nigeria’s commercial banks are not structured to support agricultural lending effectively, making concessional funding from institutions like the World Bank particularly important.
Similarly, agricultural analyst and farmer, Mr. Omotunde Banjoko, called for full transparency in the allocation process.
“This loan is workable if disbursed appropriately, but the challenge has always been transparency and targeting,” he said.
Banjoko expressed concern that previous interventions were often directed at specific subsectors or regions, leaving many farmers without direct benefits. He called for clear details on the targeted areas and the implementation framework before conclusions are drawn.
Both stakeholders emphasised that while the proposed funding presents an opportunity to address food insecurity and strengthen the sector, its impact will ultimately depend on accountability and equitable distribution.Tools