AfDB approves $210m loan for agro-industrial processing zones in Kano, Oyo

The African Development Bank (AfDB) says its board has approved a $210 million loan to co-finance phase one of the Nigeria Special Agro-Industrial Processing Zone Program (SAPZ).

In a statement on Tuesday, AfDB said the program will help to unlock Nigeria’s agriculture sector potential and boost industrialization through the development of strategic crops and livestock.

According to the statement, phase one of the project will target seven Nigerian states and the federal capital territory (FCT).

The seven states are Ogun, Oyo, Imo, Cross River, Kano, Kaduna, Kwara.

“African Development Bank financing for this program represents one of the Bank’s most ambitious operations in terms of scale and scope to date. It is made up of an African Development Bank loan of $160 million and an Africa Growing Together Fund loan of $50 million,” the statement reads.

“The project will support Nigeria’s efforts to raise agricultural productivity, promote investment, create wealth and jobs, and transform rural areas into corridors of economic prosperity. Its first phase will be implemented with co-financing from other partners in the amount of $538.05 million.”

The statement quoted Nigeria’s President Muhammadu Buhari while addressing world leaders at the recent Future Investment Initiative Summit in Riyadh, as saying that Nigeria has several million hectares of available arable land and has embarked on the creation of special agriculture processing zones across the country.

“These initiatives, we believe will make it easier for investors in agriculture,” Buhari was quoted as saying.

Speaking on the initiative, Akinwumi Adesina, AfDB president, said: “This first phase of the program is not government-driven. It is government-enabled and private sector-led. That is the critical way in which you have a structural transformation of agriculture.

“It is impressive to see a strong commitment from the Nigerian government – a very strong commitment from the Nigerian Minister of Finance and from all of the state governments because they have to give the land, they make sure that all the regulations and incentives are provided.”

In his remarks, Lamin Barrow, the director-general of the bank’s Nigeria country office, said: “Phase 1 of the Nigeria Special Agro-Industrial Processing Zones Program will mobilize private sector investment in the agro-industrial hubs and agricultural transformation centers.”

“It will impact some 1.5 million households as direct beneficiaries, with a target of creating 400,000 direct jobs and up to 1.6 million indirect jobs.”

AfDB added that SAPZ is expected to augment the following value chain commodities across states.

It listed the commodities to include: “Cross River State – cocoa, rice and cassava; Federal Capital Territory – beef and dairy livestock; Imo State – beef and dairy livestock; Kaduna State – tomato, maize and ginger; Kano State – rice, tomato, groundnuts and sesame oil; Kwara State – livestock; Ogun State – cassava, rice, poultry and fisheries; Oyo State – cassava, soybean, rice.”