The International Fund for Agricultural Development (IFAD) has joined forces with Nigeria’s Federal Ministry of Agriculture and Food Security, the World Bank Group, and development partners to launch the Nigeria AgriConnect Compact. This national framework aims to grow Nigeria’s agriculture sector, create jobs, and accelerate food and nutrition security across the country’s priority value chains. The Compact is a World Bank Group initiative designed to help smallholder farmers move from subsistence to surplus production.
AgriConnect focuses on strengthening agricultural ecosystems through stronger farmer organizations, improved market linkages, enhanced access to finance and digital solutions, and greater private sector participation across food systems. The Compact is aligned with Nigeria’s Renewed Hope Agenda and the National Agricultural Technology and Innovation Policy. It targets priority crop and livestock value chains with strong potential for productivity growth and job creation.
Over the next five years, the Compact aims to improve food and nutrition security for nearly three million people and create more than 2.5 million jobs by developing value chains and strengthening market integration. Mohamed El-Ghazaly, IFAD Country Director for Nigeria, emphasized IFAD's distinct contribution to AgriConnect, working with smallholder farmers to strengthen farmer collectives, improve post-harvest management, and build commercial linkages to connect producers to reliable markets.
Nigeria’s agriculture sector is central to the country’s economy, contributing 26 per cent of GDP and employing about 30 per cent of the workforce. However, productivity remains well below that of regional peers, and about half of the country’s 37 million hectares of arable land is underutilized. With over 31 million Nigerians facing acute food insecurity, driven by inflation, insecurity, and climate shocks, AgriConnect comes at a critical time.
The Compact will mobilize an estimated US$5 billion over five years from government, development partners, and the private sector to finance stronger foundations for smallholder productivity, advance policy reforms, and expand farmers and agribusinesses’ access to affordable credit, insurance, and blended finance. IFAD’s current portfolio in Nigeria includes the Value Chain Development Programme, the Livelihood Improvement Family Enterprises Project in the Niger Delta, and the forthcoming Value Chain Programme in Northern Nigeria.
IFAD’s financing commitment to these projects is close to US$392 million. The organization brings a distinct contribution to AgriConnect by working with smallholder farmers at the first mile of food systems. El-Ghazaly noted that AgriConnect presents an important opportunity for IFAD to build on its long-standing partnership with Nigeria and deepen support to smallholder farmers.
The launch of AgriConnect is a significant step towards transforming Nigeria’s agriculture sector. With the support of IFAD and other development partners, the Compact has the potential to boost agricultural production, attract private investment, and strengthen Nigeria’s position as a regional food basket. The initiative is expected to have a positive impact on the lives of millions of Nigerians.
Key points
- IFAD joins Nigeria’s Federal Ministry of Agriculture and Food Security to launch the Nigeria AgriConnect Compact
- The Compact aims to improve food and nutrition security for nearly three million people and create over 2.5 million jobs
- The initiative will mobilize an estimated US$5 billion over five years to finance stronger foundations for smallholder productivity
