Lagos State farmers have expressed excitement over the World Bank’s proposed $500 million loan to Nigeria’s agriculture sector, while urging transparent and effective implementation to ensure real impact.
Agriculture experts and farmers shared their views in separate interviews with reporters on Wednesday in Lagos.
The World Bank is set to approve the $500 million facility in March 2026 (with an estimated approval date of March 30), funded entirely through the International Development Association (IDA)—the Bank’s concessional lending arm for low-interest loans to developing countries.
The funds aim to boost agricultural productivity, increase food production, strengthen value chains, and create jobs across participating states. The Federal Government will borrow the money, with implementation led by the Federal Ministry of Agriculture and Food Security alongside state governments.
Reacting to the news, the acting Chairman of the All Farmers Association of Nigeria (AFAN), Lagos State Chapter, Mr. Shakin Agbayewa, described the loan as a welcome development, especially given high inflation and the high cost of domestic borrowing.
“We are excited to hear about the proposed World Bank loan. The truth is that with the high rate of inflation and the cost of securing loans in Nigeria, this loan is coming at the right time and it cannot be overemphasized,” Agbayewa said.
“However, our concern is the implementation and execution of the loan when approved. If the loan is implemented and executed properly, it should boost local agricultural production because the truth is that nobody, no sector, or even a country can survive without a loan.
“So, when we see the World Bank coming to assist us—maybe at a very reduced interest rate or zero interest rate—that will serve as a big boost to the Nigerian agriculture sector across the board. From inputs to logistics, production, processing, and value addition, the loan is a very good initiative for the sector.”
He expressed farmers’ apprehension about execution, urging the Ministry of Agriculture to channel funds through AFAN—the national umbrella body for farmers in Nigeria.
“The fear is execution and implementation of the loans. We want to urge the Ministry of Agriculture or whoever is responsible to disburse the loan through AFAN, as it has a structure from national to state, zonal coordinators, and local government chapters.
“And we have all our members in different commodities and produce sectors that can benefit from the loan. That way, the loan will be well-targeted to help mitigate or fight food insecurity.
“The loan will help because our banks in Nigeria are not geared toward agricultural loans. So, if someone offers us the olive branch for the sector, I think it is a work of development. We just hope that it gets to the farmers and is well implemented,” he added.
Agriculture analyst and farmer Mr. Omotunde Banjoko also called for transparency in disbursement.
“This World Bank loan is workable if disbursed appropriately, but the challenge is always how it is disbursed, so we wait until we see the full details,” Banjoko said.
“The question we ask is how have these funds been used because in the past they will tell you that the funds are directed towards areas where they are having security issues in the North.
“Most of the interventions have always been going in that direction. What we have noticed is that most times, the loan is not entirely for all farmers in Nigeria. It is always directed towards specific subsectors at times.
“So, we want to get the details to know what area they are targeting. There has always not been transparency in all these funding. So, we have $500 million but I am not sure even $1 million goes to the farmers.
“We want to wait till we get the full details of how the loan will be shared. We want to know which sector they are targeting, and then we’ll look at what method they want to use for implementation. We are just worried about the implementation,” he concluded.
The proposed loan arrives amid Nigeria’s persistent food insecurity, rising inflation, and challenges in agricultural financing. Farmers’ calls for transparency reflect past experiences with interventions often perceived as unevenly distributed or misdirected, highlighting the need for inclusive, accountable execution to maximize benefits for smallholders nationwide.
