AfDB Deploys $200m to Rewire Nigeria’s Food Economy and Deepen STEM Capacity
The Board of Directors of the African Development Bank Group (AfDB) has approved a $200 million facility to scale up priority agricultural investments in Nigeria, reinforcing federal efforts to boost productivity, strengthen value chains and accelerate climate-smart, data-driven farming.
The financing supports the second phase of the Federal Government’s National Agricultural Growth Scheme–Agro-Pocket (NAGS-AP), building on earlier interventions under the Bank’s African Emergency Food Production Facility.
Scaling Food Security Through Technology
The programme aligns with Nigeria’s National Agricultural Technology and Innovation Policy (NATIP) and focuses on:
- Expanding access to quality seeds and fertiliser blends tailored to local conditions
- Strengthening value chains for priority crops
- Revitalising agricultural extension systems
- Promoting digital and climate-smart farming models
- Enhancing agricultural data management
The funding targets a fivefold increase in wheat production and a 20 per cent rise in rice output, alongside expanded crop insurance coverage to shield farmers from climate-related risks.
According to Abdul Kamara, Director General of AfDB’s Nigeria Country Department, Phase Two builds on measurable gains recorded under Phase One.
“By expanding access to quality inputs, digital tools and climate-smart technologies, we are supporting farmers to improve productivity and resilience. This programme will continue to reduce food imports and boost local production,” he said.
Phase One deployed an ICT-based input distribution system through more than 600 agro-dealers nationwide, supported 118,000 hectares of wheat cultivation during the 2023/2024 dry season and tripled national wheat output to an estimated 0.5 million metric tonnes in 2024. Approximately 650,000 smallholder farmers benefited.
Why This Matters Now
Agriculture accounts for about 38 per cent of Nigeria’s workforce and contributes roughly 25 per cent to GDP, yet productivity remains constrained by poor input access, irrigation gaps and climate volatility.
With rising food import bills and FX pressures, scaling domestic grain production is now a macroeconomic imperative — not just an agricultural priority.
The four-year project, expected to commence in March, is also designed to expand youth participation in commercial farming and deepen women’s inclusion in agri-value chains.
AfDB Deepens STEM Capacity Through AUST
Beyond agriculture, AfDB-backed investments are strengthening Nigeria’s research and innovation ecosystem through support to the African University of Science and Technology (AUST) in Abuja.
Implemented under the Nelson Mandela Institute–African Institutions of Science and Technology (NMI–AIST) initiative between 2010 and 2022, the programme enhanced postgraduate training, laboratory infrastructure and research collaboration across Africa.
AUST has produced 398 MSc and PhD graduates under the initiative, with women accounting for about 35 per cent. Scholarships included 115 MSc and 90 PhD awards, while 149 visiting faculty missions strengthened academic exchange.
Through the Women in Science and Engineering (WiSE) initiative, the Bank supported female scholars with mentorship, scholarships and research grants — advancing representation in high-impact scientific fields.
The AUSTInspire innovation hub has supported around 15 startups linking research to entrepreneurship, while research outputs span cancer treatment, oil-spill remediation and sustainable energy systems.
BRANDECONOMY Insight
This is not merely development finance — it is structural repositioning.
AfDB’s twin-track investment in agriculture and STEM reveals a strategic logic:
- Short-term food security stabilisation
- Medium-term industrial competitiveness
- Long-term knowledge economy transformation
In agriculture, digitisation and input reform directly address Nigeria’s FX vulnerability by reducing food imports.
In STEM, building scientific capacity reduces dependence on imported innovation, pharmaceuticals and engineering services.
If successfully implemented, the $200 million agricultural scale-up could lower inflationary pressures tied to food supply, improve rural incomes and strengthen macro stability.
Meanwhile, sustained investment by AfDB in advanced science education lays the foundation for domestic industrialisation and technology leadership.
The challenge will be execution discipline, transparency in disbursement and measurable productivity gains.
If outcomes match ambition, this intervention could mark a pivotal shift from subsistence agriculture toward commercially scalable, technology-enabled agribusiness — supported by a rising domestic research base.
