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Nigeria secure extra $1bn for agro-processing

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By Abdulwasiu Usman

Substantial resources are committed to the development of SAPZs.

An additional $1 billion in funding has been secured by Nigeria to implement the Special Agro-industrial Processing Zones (SAPZ) program across 24 states. The African Development Bank (AfDB), the Islamic Development Bank (IsDB), and the International Fund for Agricultural Development (IFAD) all approved to provide funding for the SAPZs projects in the states. AfDB president Akinwumi Adesina stated that the second phase of the program will deliver special agro-industrial processing zones in 24 states of Nigeria by mobilizing an additional $1 billion.

According to a statement released by Stanley Nkwocha, Adesina made this announcement during the World Food Prize 2023 in Iowa, United States. Initial funding of $520 million was approved by the AfDB and its partners in October 2022 to establish SAPZs in 8 states. The resolve to establish SAPZs in 13 nations, as stated by Adesina, led to the decision to invest the funds in Nigerian agribusiness industry. He stated that substantial resources are being committed to the development of SAPZs in order to facilitate the growth of agricultural value chains, food processing, and value addition. As well as enabling infrastructure and logistics to boost food trade on a local, national, and international scale.

Additional co-financing of $661 million has been secured by AfDB.

AfDB is investing an estimated $853 million into developing the Special Agro-Industrial Processing Zones by the African Development Bank Group. In his speech ‘From Dakar to Des Moines’, Adesina announced that the bank has secured additional co-financing of $661 million, bringing the total commitment to $1.5 billion. He bemoaned that despite the advancements in African agriculture, over 283 million people suffered from hunger. The dialogue at the World Food Prize 2023 was an epic tale of how the power of science, technology, policy, and politics could be combined to help Africa realize its agricultural potential and feed itself with dignity.

SAPZ, initiated by the African Development Bank, was launched in Nigeria on October 24, 2022, marking the beginning of the country’s journey to end hunger and attain food security. Eight states, including Cross River, Imo, Kaduna, Kano, Kwara, Ogun, Oyo, and the Federal Capital Territory, Abuja, began rolling out the program’s initial phase at a launch event held in Abuja. AfDB is donating $210 million, IsDB and IFAD are contributing $310 million, and the Nigerian government is contributing $18.05 million.

This initiative is crucial to the nation’s food security.

These new economic zones (the Special Agro-industrial Processing Zones) will be fully supported by infrastructure (electricity, water, roads, digital infrastructure, and logistics) to attract food and agribusiness enterprises to rural areas. This, according to Adesina, will pave the way for the establishment of highly competitive food and agricultural value chains by placing them in close proximity to farmers in production catchment areas, hence providing market demand for farmers, bolstering processing and increased value, reducing food losses, and boosting overall food security.

Value chains for important crops such as maize, cassava, rice, soybeans, cocoa, poultry, and livestock products will be developed in the SAPZs in Nigeria. Millions of lucrative employment, especially for young people and women, will be generated as a result. In a rallying call, Adesina noted that SAPZs are crucial to the nation’s food security, rural economies, budgetary flexibility, realization of Nigeria’s agricultural potential, and creation of millions of employment opportunities. At the international dialogue, Vice President Kashim Shettima delivered a keynote address in which he expressed optimism that the new administration of President Bola Tinubu will provide an enabling climate for investors in the zones.

All participants in the value chain will be adequately provided for.

He also promised that in the next cropping cycle, the federal government would lead an initiative to help farmers by providing them with agricultural extension services, fertilizer, and expanding irrigation areas to a million hectares. The Vice President has stated that Nigeria needs to produce approximately 2.4 million tonnes of wheat grains. We plan to engage with our farmers via digitalization and small-scale irrigation projects. Through creative financing, partial credit guarantees, and crop insurance, all participants in the value chain will be adequately provided for. Vice President Shettima added that the country aims to be rice self-sufficient by the year 2027.


Related Link

AfDB: Website


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AN-Toni
AN-Toni
Editor
1 month ago

Nigeria secure extra $1bn for agro-processing. – Substantial resources are committed to the development of SAPZs. – Express your point of view.

Adeoye Adegoke
Adeoye Adegoke
Member
1 month ago

Securing an additional $1 billion for agro-processing in Nigeria is a significant boost for the agricultural sector. This investment will not only stimulate economic growth but also create employment opportunities and improve food security in the country. The commitment to the development of Special Agro-Processing Zones (SAPZs) is particularly promising. SAPZs have the potential to transform the agricultural landscape by providing infrastructure, technology, and support services to farmers and agribusinesses. This will enhance productivity, value addition, and market access for agricultural products. It’s exciting to see such substantial resources being allocated to the agricultural sector, and I believe it will contribute to the overall development and prosperity of Nigeria.

Kazeem1
Kazeem1
Member
1 month ago

It is significant because Nigeria will receive an extra $1 billion for agro-processing. The development of Special Agro-Processing Zones is clearly highly committed to. By generating jobs and stimulating the economy, these investments may have a major effect on the agriculture industry.

Taiwo
Taiwo
Member
1 month ago

Obtaining an additional $1 billion for agro-processing has been extremely beneficial to Nigeria’s agricultural industry. This investment will improve job opportunities and the country’s food security in addition to encouraging economic progress.