‘$540m raised’ — AfDB to fund 7 states for agro-industrial processing zones

The African Development Bank (AfDB) says it will commence the disbursement of funds to the first batch of states for the development of special agro-industrial processing zones (SAPZs).

The disbursement is set to commence after AfDB raised $540 million.

Banji Oyelaran-Oyeyinka, senior special adviser on industrialisation to AfDB president, disclosed this while presenting a report to Vice-President Kashim Shettima, in Abuja on Monday.

He led a delegation of the bank and that of the United Nations Industrial Development Organisation (UNIDO) to present their separate reports on the status of projects being executed in Nigeria.

He said the SAPZ was an initiative of the AfDB aimed at turning the rural landscape into economic zones of prosperity and harnessing the power of commercial agriculture and food.

“The primary objective is to support inclusive and sustainable agro-industrial development in Nigeria. Phase one of the project is at the point of disbursement,” he said.

“Kaduna, Oyo and Cross River states are all in the process of receiving disbursements and we hope that the other states can speed up their documentation so that we can fast-track them.

“We raised $540 million in catalytic funding and we expect every state to find a partner that will bring equity and join up with them.

“It is a government-enabled project but private-sector driven.”

According to Oyelaran-Oyeyinka, the first phase of SAPZs is being implemented in seven states, namely Cross River, Imo, Kaduna, Kano, Kwara, Ogun, and Oyo, as well as the Federal Capital Territory (FCT).

“Ogun state found a partner for the project and decided not to take the loan. We are basically going to distribute the loan to the other states,” he said.

“The next thing is preparation for phase two with 27 states. The demand is enormous but we have to prioritise those who move fast.

“We have set up eligibility criteria for the states and to rank them. We expect them to have a feasibility report, environmental impact study and a commitment to counterpart funding.”

‘AJAOKUTA STEEL TO SERVE AS PROFIT CENTRES’

On her part, Abimbola Wycliffe, head of investment and technology promotion office, UNIDO, spoke on the recovery plan for the Ajaokuta Steel Company Ltd. 

She said the plan would include revitalisation through rehabilitation, modernisation, and expansion.

“Single-phase turnaround for the entire plant is challenging due to heavy investments and a prolonged revenue generation timeline,” Wycliffe said.

“We will convert the integrated steel plant into strategic business units (SBUs) to serve as profit centres.

“Conduct opportunity studies for each SBU, focusing on incremental investments, raw materials availability, labour, utilities, and market demands.

“Prioritise SBUs with lower investments and quicker positive cash flows (the low-hanging fruits).”

She recommended the enhancement of foreign exchange earnings and contribution to local economic development in the country.

Responding, Shettima said that all hands must be on deck to ensure that the visions of President Bola Tinubu are delivered to Nigerians.

“We have passed the age of talking; we have to walk the talk. We can talk from now till eternity and it does not mean anything if there is no action and hence we must make this work,” Shetimna said.

“We just must. We have not seen beyond the depth of our pockets; what comes to us is more important than what comes to the generality of the people. Things must change.”

He told the delegates this is a “time to walk the talk”, adding that he believes when there is a will, there is always a way.