NIGERIA has secured an additional $1 billion to deliver projects on the special agro-industrial processing zones (SAPZs) initiative in 24 States.
The African Development Bank (AfDB), Islamic Development Bank (IsDB) and the International Fund for Agricultural Development (IFAD) voted for the funds to deliver the SAPZ projects in the states.
“The second phase of the programme aims to mobilise an additional $1 billion to deliver special agro-industrial processing zones in 24 states of Nigeria,” AfDB president, Akinwumi Adesina, said.
He disclosed this at the World Food Prize 2023 in Iowa, United States, according to a statement from the office of the Vice President issued by Stanley Nkwocha.
The AfDB and its partners had, in October 2022, voted an initial $520 million for the development of SAPZs in eight states in the country.
According to Adesina, the decision to pool the funds into Nigeria’s agribusiness was part of the resolve to develop SAPZs in 13 countries.
“We are investing heavily in the development of SAPZs to support the development of agricultural value chains. Food processing and value addition, enabling infrastructure and logistics to promote local, regional, and international trade in food.
“The African Development Bank Group is investing $853 million in the development of the Special Agro-Industrial Processing Zones. The bank has mobilised additional co-financing of 661 million dollars, for a total commitment of $1.5 billion,” Adesina said in his speech, ‘From Dakar to Des Moines’.
He lamented that about 283 million people suffered from hunger in Africa despite much progress made in the African agriculture sector.
He asserted that the World Food Prize 2023 dialogue was a journey and narrative combining the power of science, technology, policies and politics to ensure that Africa fully unlocks its agricultural potential and feeds itself with pride.
On October 24, 2022, Nigeria began the journey to end hunger and achieve food security, launching the SAPZ initiated.
At the launch ceremony in Abuja, eight states, including Cross River, Imo, Kaduna, Kano, Kwara, Ogun, Oyo, and the Federal Capital Territory, Abuja, kick-started the implementation phase.
Of the initial $520 million, the AfDB is providing $210 million, IsDB and IFAD jointly providing $310 million, while the Nigerian government is contributing $18.05 million.
“The Special Agro-industrial Processing Zones are new economic zones, located in rural areas, to be fully supported by infrastructure (power, water, roads, digital infrastructure, and logistics) that will allow food and agribusiness companies to locate within such zones. This will put them close to farmers in production catchment areas, provide market offtakes for farmers, support processing and value addition, reduce food losses, and allow the emergence of highly competitive food and agricultural value chains,” Adesina had said.
While delivering a keynote address at the international dialogue, Vice-President Kashim Shettima raised hope that the new administration of President Bola Tinubu would provide an enabling environment for investors in the zones.
He also assured that the Federal government would drive a process that would support farmers with agricultural extension services fertiliser and increase the irrigation areas to one million hectares in the next cropping cycle.
“We need to produce about 2.4 million tonnes of wheat grains in Nigeria. We are going to reach out to our farmers through small irrigation schemes and digitalisation.
“All the actors in the value chain will be sufficiently taken care of through innovative finance, partial credit guarantees and crop insurance. Our target is to achieve self-sufficiency in rice latest by 2027,” Shettima said.