Farmers in Lagos State have expressed joy over the World Bank proposed $500 million loan to the Nigerian agriculture sector, while calling for appropriate implementation.

The agriculture experts made the call in separate interviews with the News Agency of Nigeria (NAN) on Wednesday in Lagos.

The World Bank plans to approve a new $500 million loan to Nigeria in March 2026.

The fund will be disbursed to improve agriculture, increase food production, strengthen value chains, and create jobs in different states.

The entire $500 million will come from the International Development Association, which is the World Bank’s arm that gives low-interest loans to developing countries.

With the Federal Government as a borrower, the project will be carried out by the Federal Ministry of Agriculture and Food Security and participating states.

Reacting to the proposed loan, the acting Chairman of the All Farmers Association of Nigeria (AFAN), Lagos State Chapter, Mr. Shakin Agbayewa, who described the loan as a welcome development called for transparency in its implementation.

“We are excited to hear about the proposed World Bank loan, the truth of the matter 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 overemphasised.

“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 agriculture production because the truth is that nobody, no sector or even a country can survive without a loan.

“So, when we see a World Bank coming to assist us, maybe at a very reduced interest rate or a zero interest rate, that will serve as a big boost in the Nigerian agriculture sector across all boards.

“From inputs to logistics, to production, or processing, and value addition, the loan is a very good initiative for the sector,” Agbayewa said.

He said the farmers were afraid of execution and implementation of the loans.

“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 to go through AFAN, as a national chapter, that is the umbrella body of all farmers in Nigeria.

“This is because AFAN has a structure, from the national to the state, to zonal coordinators and local government chapters that work as far as the structure.

“And we have all our members in the different commodities and produce sectors that can benefit from the loan.That way the loan will be well targeted to enable us mitigate or fight food insecurity.

“The loan will help because our banks in Nigeria are not wired or billed towards agricultural loans. So, if you now see someone offering 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 said.

On his part, an agriculture analyst and farmer, Mr Omotunde Banjoko, called for transparency in the disbursement of the loan.

“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.

“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,” Banjoko said. (NAN)