By Iroyin Yoruba Television
Nigeria has launched a new agricultural transformation framework designed to mobilise an estimated $5 billion over five years while improving productivity, strengthening food and nutrition security, expanding market access and creating millions of jobs across the country’s agricultural value chains.
The Nigeria AgriConnect Compact brings together the Federal Ministry of Agriculture and Food Security, the World Bank Group, the International Fund for Agricultural Development, other development partners, financial institutions, research organisations, private-sector businesses and farmer groups in a coordinated effort to address some of the structural challenges affecting Nigeria’s agriculture sector.
The initiative is part of the wider World Bank Group AgriConnect programme, which seeks to help smallholder farmers move from subsistence production toward commercially viable agriculture by improving access to finance, markets, technology, agricultural services and stronger farmer organisations.
For Nigeria, the compact is expected to focus on priority crop and livestock value chains with potential to increase production, generate employment and strengthen food security. The framework is aligned with the country’s agricultural policy direction and is intended to bring different interventions together rather than allowing programmes to operate in isolation.
The International Fund for Agricultural Development said the Nigeria compact aims over the next five years to improve food and nutrition security for nearly three million people and create more than 2.5 million jobs through value-chain development and stronger market integration.
The compact also sets indicative productivity targets for major crops. Average yields for rice, maize and wheat are targeted to increase by 30 percent, while cassava yields are expected to rise by 35 percent. The programme also includes productivity and reproductive targets for cattle, small ruminants, pigs and poultry.
The scale of the proposed intervention reflects the importance of agriculture to Nigeria’s economy. Agriculture contributes about 26 percent of gross domestic product and employs roughly 30 percent of the country’s workforce, according to IFAD. At the same time, a significant portion of Nigeria’s arable land remains underutilised, while farmers continue to face constraints involving productivity, financing, infrastructure, markets, climate conditions and security.
The AgriConnect Compact is therefore being presented as an effort to address several of these challenges simultaneously.
Rather than concentrating only on agricultural production, the framework places considerable emphasis on the wider value chain. That includes the activities that occur before crops and livestock reach farms, the production process itself, processing, storage, transportation, marketing and access to consumers.
This approach is important because increasing farm output does not automatically guarantee higher incomes for farmers. Farmers can produce larger quantities but still struggle financially if they cannot obtain affordable inputs, reach buyers, store their produce or access competitive markets.
By linking farmers to processors, financiers, traders and other private-sector participants, the compact seeks to create a more connected agricultural economy in which increased production can translate into greater commercial opportunities.
Access to finance is another major part of the initiative.
Many smallholder farmers operate with limited capital and can find it difficult to obtain formal credit on affordable terms. Without adequate financing, farmers may be unable to purchase improved seeds, fertiliser, machinery, irrigation equipment or other inputs needed to raise productivity.
The compact is expected to support greater access to affordable credit, insurance and blended finance for farmers and agricultural businesses. The aim is to reduce some of the financial barriers that prevent small-scale producers from expanding their operations.
Agricultural insurance can also play an important role because farmers face risks that are outside their control. Flooding, drought, pests, disease outbreaks and other climate-related events can cause substantial losses in a single production cycle.
Better access to insurance and risk-sharing mechanisms could help farmers recover from some of these shocks while making agricultural lending more attractive to financial institutions.
The compact also places emphasis on stronger farmer organisations. Organised farmer groups can potentially negotiate better terms with buyers, obtain inputs more efficiently, share knowledge and improve access to financing and other services.
Stronger farmer organisations can also make it easier for government agencies and development partners to deliver agricultural programmes at scale.
For development institutions, working with organised producer groups can provide a more structured way of reaching large numbers of farmers while also strengthening the ability of producers to participate in commercial value chains.
Digital technology is another important element of the wider AgriConnect approach.
Nigeria’s agricultural sector increasingly depends on accurate information about weather conditions, markets, production methods, prices and agricultural risks. Digital platforms can help distribute such information more quickly and potentially reach farmers who may not have regular physical contact with agricultural extension officers.
The World Bank’s work around the compact also includes plans to strengthen Nigeria’s digital agricultural ecosystem and improve the delivery of timely advisory services to farmers.
This could become particularly important as the government works to modernise agricultural extension services. Farmers require information that is relevant to their particular crops and locations, especially when making decisions about planting, fertiliser application, pest management and harvesting.
Digital agricultural systems can complement traditional extension services, although the effectiveness of such systems will depend on access to telecommunications, electricity, devices and reliable information.
The compact also seeks to improve market integration.
For many farmers, producing food is only one part of the challenge. Finding reliable buyers and receiving fair and predictable prices can determine whether increased production results in improved household income.
Stronger market linkages could help farmers move from informal and fragmented transactions toward more structured relationships with processors, aggregators and other buyers.
Such relationships can also encourage farmers to meet specific quality standards because buyers may provide clearer requirements concerning volumes, timing and product quality.
This can contribute to the development of commercial value chains in which farmers are connected more directly to processing and distribution businesses.
Post-harvest management is another area of importance.
Agricultural products can lose significant value after they leave the farm because of inadequate storage, poor transportation, processing limitations and delays in getting produce to market.
Reducing post-harvest losses can effectively increase the amount of food available without requiring farmers to cultivate additional land.
Better storage and processing infrastructure can also give farmers more flexibility in deciding when to sell their produce. Without adequate storage, farmers may be forced to sell immediately after harvest, sometimes when market prices are under pressure from large seasonal supplies.
Processing can provide another route to higher value. Instead of selling raw agricultural products, farmers and businesses can participate in value chains that turn crops and livestock products into processed goods.
This can create additional employment while also increasing the economic value generated within Nigeria.
The compact's focus on private-sector participation reflects this broader objective.
Agriculture requires substantial investment beyond government budgets. Farmers, processors, logistics companies, technology firms, financial institutions and other businesses all have roles to play in building functioning agricultural value chains.
The estimated $5 billion mobilisation target is therefore expected to involve government resources, development financing and private-sector capital.
IFAD said the compact would mobilise the estimated amount over five years to strengthen the foundations for smallholder productivity, support policy reforms and expand farmers’ and agribusinesses’ access to finance.
The participation of international development institutions also provides technical and financial support.
IFAD has described its role as focusing particularly on smallholder farmers, farmer organisations, post-harvest management and commercial connections between producers and markets.
The organisation already has agricultural development programmes operating in Nigeria, including the Value Chain Development Programme and the Livelihood Improvement Family Enterprises Project in the Niger Delta.
Its involvement in AgriConnect therefore builds on an existing relationship with Nigeria’s rural economy.
The World Bank Group is also positioning AgriConnect as a wider effort to transform agricultural systems in developing countries. The global initiative seeks to support millions of smallholder farmers by strengthening the ecosystems around agriculture rather than treating farming as an isolated activity.
For Nigeria, the emphasis on value chains is particularly significant because the country has a large agricultural population but continues to face gaps between production and consumption.
Nigeria has considerable agricultural potential across crops, livestock and other food-producing activities. However, potential does not automatically translate into reliable food supplies, competitive prices or higher farmer incomes.
Infrastructure remains a major factor.
Roads, irrigation systems, electricity, storage facilities and logistics networks all influence the cost of moving agricultural goods from farms to markets.
Where roads are poor or transportation is expensive, farmers may struggle to move perishable produce to urban markets. Where electricity is unreliable, processing and cold-storage businesses can face higher operating costs.
Irrigation is similarly important because dependence on rainfall can expose farmers to changing weather patterns and irregular rainfall.
The compact's focus on agricultural ecosystems means that these supporting systems are relevant to the overall objective of increasing productivity.
Climate change is another challenge affecting the sector.
Farmers increasingly need access to information and technologies that can help them adapt to changing weather conditions. Crop varieties, irrigation techniques, soil-management practices and weather information can all influence the ability of farmers to manage climate-related risks.
A modern agricultural system therefore requires more than traditional production methods. It requires research, innovation and the ability to transfer useful technologies from research institutions to farmers.
The compact includes stronger links between research, farmers and private-sector businesses as part of this broader transformation.
This connection can help reduce the gap between agricultural innovations developed by researchers and technologies actually used by farmers.
Research institutions may develop improved crop varieties or production methods, but those innovations have limited economic impact if farmers cannot obtain them or do not receive adequate information about how to use them.
Commercialisation and extension therefore become important parts of the process.
The compact's employment target also places agriculture at the centre of Nigeria's broader economic development strategy.
Creating 2.56 million jobs by 2031 would require opportunities across more than primary farming. Employment could emerge in processing, transportation, storage, input supply, agricultural technology, finance, marketing and other parts of the value chain.
This is particularly relevant for young Nigerians seeking opportunities outside traditional employment sectors.
Agriculture increasingly involves technology, logistics, financial services and business management, meaning that opportunities in the sector are not limited to working directly on farms.
The development of stronger agricultural value chains could therefore create opportunities for entrepreneurs and skilled workers as well as farmers.
Women are also an important part of the agricultural economy.
Women participate in farming, processing, trading and household food production, but may face barriers to land ownership, finance, technology and market access.
A value-chain approach provides an opportunity to address some of these barriers by ensuring that agricultural financing and commercial opportunities are accessible to women as well as other producers.
The success of the compact, however, will depend on implementation.
Nigeria has previously launched numerous agricultural programmes, and one of the recurring challenges has been ensuring continuity, coordination and measurable results.
The new framework is intended to address this problem by creating a coordinated national approach that brings government agencies and development partners around common objectives.
Clear targets could also make it easier to monitor progress.
The proposed yield increases for rice, maize, wheat and cassava provide measurable indicators against which agricultural performance can be assessed.
Similarly, the targets for job creation and food and nutrition security provide benchmarks for determining whether the programme is producing the expected outcomes.
For farmers, however, the most important measure will remain practical improvement at the farm level.
Farmers will need to see whether access to financing becomes easier, whether markets become more reliable, whether productivity improves and whether agricultural businesses become more profitable.
The success of a large national agricultural framework cannot be measured only by the amount of money announced or the number of partnerships established.
Its impact will ultimately depend on how effectively resources are converted into services, infrastructure, investment and commercial opportunities.
The compact also comes at a time when food affordability remains an important concern for Nigerian households.
Higher agricultural productivity can potentially increase domestic food supply and reduce some supply pressures, although food prices are influenced by many factors beyond farm production.
Transportation costs, exchange rates, input prices, insecurity, storage, processing capacity and market conditions can all affect the final price consumers pay.
Agricultural transformation must therefore be connected to improvements throughout the food system.
The AgriConnect Compact's focus on value chains reflects this reality.
By linking production with finance, processing, markets, technology and logistics, the initiative seeks to address several of the obstacles that can prevent agricultural growth from translating into stronger food supplies and better livelihoods.
The five-year mobilisation target also indicates that the initiative is intended to operate over a substantial period rather than as a short-term intervention.
Long-term investment is particularly important in agriculture because some infrastructure and production improvements require several seasons before their full benefits become visible.
Farmers also need confidence that programmes and markets will remain available before making major investments in equipment, improved inputs or expanded production.
A stable policy environment can therefore be as important as financial support.
The government's alignment of AgriConnect with its agricultural technology and innovation policy is intended to provide that broader policy framework.
The participation of development institutions and private businesses could also provide additional technical expertise and investment capacity.
As implementation progresses, attention will likely focus on how the programme's resources are allocated, which value chains receive priority, how farmers are selected for support and how results are measured.
Transparency and effective monitoring will be important because of the scale of the proposed financing and the number of people expected to benefit.
Nigeria's agricultural sector is too large and diverse for a single intervention to address every challenge.
Conditions differ substantially between regions, crops and farming systems. A programme designed for commercial grain production may require different approaches from one supporting livestock, horticulture or small-scale processing.
The compact's value-chain approach provides room for different interventions while maintaining common national objectives.
For smallholder farmers, the central opportunity is the possibility of becoming more connected to the wider agricultural economy.
Instead of operating independently with limited access to finance and markets, farmers could potentially become part of stronger producer organisations and commercial relationships.
For businesses, the framework could provide opportunities to invest in agricultural processing, logistics, technology and financial services.
For government, the challenge will be ensuring that the different components work together and that the promised investment translates into measurable improvements.
The launch of Nigeria's AgriConnect Compact therefore represents a new phase in the country's attempt to transform agriculture from a predominantly production-focused sector into a more integrated commercial food system.
The estimated $5 billion mobilisation target, the proposed productivity improvements and the job-creation objective give the initiative a substantial scope.
But the eventual impact will depend on implementation across farms, communities and agricultural businesses.
Farmers need practical access to finance, inputs, technology, infrastructure and markets. Businesses need a predictable environment in which to invest. Consumers need reliable food supplies at sustainable prices. Development institutions need to see measurable improvements from their support.
The AgriConnect framework seeks to bring these interests together around a common agricultural transformation agenda.
If its programmes are implemented effectively, the initiative could strengthen connections between Nigerian farmers and the wider food economy while supporting investment in production, processing and distribution.
The immediate task is to move from the launch framework to implementation, with clear responsibilities, financing arrangements, farmer participation and measurable targets.
Nigeria's agricultural future will depend not only on how much land is cultivated but also on how efficiently that land is used, how much value farmers can capture and how effectively agricultural businesses connect production to consumers.
The AgriConnect Compact is now positioned as one of the major frameworks through which the government and its development partners intend to pursue those objectives.
Its progress will ultimately be measured not by the launch itself but by what happens in farming communities, agricultural businesses and food markets as the programme moves into implementation.