According to Mr. Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, the advancement of agro-industrial initiatives is essential for the country’s economic prospects. He emphasised that the Special Agro-Industrial Processing Zones (SAPZ) initiative plays a crucial role in both stabilising and enhancing Nigeria’s economic landscape. These comments were delivered by the minister at the SAPZ-1 High-Level Implementation Acceleration Dialogue and the Workshop for the State Steering/Technical Committee, which was arranged by the Federal Ministry of Agriculture and Food Security alongside the African Development Bank (AfDB), the International Fund for Agricultural Development (IFAD), and the Islamic Development Bank (IsDB).
Edun highlighted the vital role of food production in maintaining essential economic indicators like inflation, interest rates, and currency value. He pointed out that food represents 50% of the Consumer Price Index (CPI), underscoring its significance for Nigeria’s economic health. Additionally, he noted that the successful implementation of the SAPZ initiative will modernise Nigeria’s agricultural sector, boost food output, and ultimately foster Economic Development in the nation. According to Edun, food constitutes half of the Consumer Price Index. He emphasised that while it represents a central component of the index, its variability has increased.
Improvement in food production will reduce inflation rates.
With Inflation exceeding 30% at present, he pointed out that improved food production could lead to a marked reduction in inflation rates. He added, ‘Enhancements in food production will lower inflation, decrease interest rates, stabilise the currency, and lay the groundwork for investments in the private sector.’ Edun emphasised the urgency of enhancing food production, noting its critical role in ensuring that Nigerians have access to affordable food in the near future. He expressed confidence in the benefits of the SAPZ initiative, asserting that it will positively impact agricultural exports, improve Trade balance, and bolster foreign exchange reserves.
The SAPZ initiative, supported by global development organisations like AfDB, IFAD, and IsDB, is designed to enhance the Productivity and competitiveness of agriculture in Nigeria. Already launched in seven states, this program is projected to generate 400,000 direct jobs along with 1.6 million indirect jobs, particularly for young people and women. Also, Abubakar Kyari, the Minister of Agriculture and Food Security, emphasised the transformative possibilities of the SAPZ initiative for Nigeria’s agricultural landscape. He detailed that the initiative aims to enhance food output, create employment opportunities, and stimulate economic development by utilising a design, build, and operate (DBO) framework.
Post-harvest losses will be reduced to around 20%.
This initiative is expected to generate 500,000 direct and indirect positions along with an extra 2.5 million short-term positions associated with Construction projects and related support services. Kyari emphasised the program’s significance for food security, aiming to boost staple crop production by 50-100%. Another major milestone will be lowering post-harvest losses from the current rate of 45% to around 20%. This effort aligns with President Bola Ahmed Tinubu’s wider goals for food security, agro-industrial development, and comprehensive economic advancement.
Dr. Abdul Kamara, the Director General of the Nigeria Country Department at the AfDB, underscored the significant impact of the SAPZ initiative in alignment with this vision. He highlighted that an Investment of $538 million from global partners will enable the initial phase of the programme to focus on seven states in Nigeria, including the Federal Capital Territory (FCT), positively affecting 1.5 million households. Kamara emphasised that the SAPZ initiative could enable Nigeria to become a strong contender in the international agricultural arena and enhance industrial development in its rural regions.
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Dede Ekoue, the Country Director of IFAD, reiterated the organisation’s dedication to the SAPZ initiative. She recognised the active participation of state governments, including Kano and Ogun, in enhancing the program’s rollout. Ekoue highlighted that IFAD has finalised off-take agreements for essential agricultural goods such as rice and tomatoes, which secures a reliable market for smallholder farmers and agribusinesses. When executed effectively, it can transform the country’s economy, guaranteeing food availability, creating jobs, and promoting a contemporary agro-industrial environment that will propel economic advancement in the future.