(Ecofin Agency) - The World Bank, in order to boost agricultural productivity in Nigeria, has approved a $200 million credit facility during the weekend to further support small and medium scale farmers in the country.

The loan attests that the World Bank recognizes agriculture as the gateway to Nigeria’s long-term economic growth and diversification, according to Word Bank Country Director, Rachid Benmessaoud. It is aimed at resolving major challenges such as low productivity, lack of seed funding to establish agro-processing plants and lack of access to supportive infrastructure, in the agricultural sector.

He added that the facility will also tackle the issue of low level of technology and limited access to markets. It would benefit women and youth businesses in areas such as horticulture, poultry and aquaculture.

The credit, which is provided by the bank’s grant and low-interest arm, the International Development Association (IDA), will be on standard IDA terms, with a maturity of 25 years and a grace period of 5 years.

Anita Fatunji