AfDB partners Enugu to finance infrastructure, power projects

The African Development Bank (AfDB) has pledged to partner with Enugu in the areas of investment, infrastructure, and other projects to enhance development in the state.

Lamin Barrow, AfDB’s director-general of Nigeria, spoke during a meeting with Peter Mbah, governor of Enugu, at the state government house, on Thursday.

Nigeria had in October 2023 secured a $1 billion investment for special agro-industrial processing zones (SAPZ) in 24 states.

Speaking on the projects, Barrow said phase one of some of the programmes, especially in the area of the SAPZ valued at $18 million, has been approved.

He said the bank is in the process of rolling out the second phase, which would integrate the needs of the state government.

“Phase two of the programme would support the implementation of the SAPZ project, which the state had already undertaken,” Barrow said.

Barrow said the state commands a competitive advantage in some agro-allied crops like cassava, maize, and other strategic staples.

“What the SAPZ is doing is to help develop value chains for these crops, adding value to primary crops, help in reducing post-harvest losses, develop strong linkages with stakeholder farmers, training and creating financial support for the farmers’ activities, but most importantly, driven by anchor private-sector investors,” the AfDB director-general said.

Barrow also said the bank would assist the state in de-risking investment flow in its efforts to strengthen and enhance the production of agricultural produce beyond food security to export for the state and Nigeria in general.

Also at the meeting, Jitender Sachdeva, president of SkipperSeil Group — an engineering and infrastructure firm — lauded Mbah for the positive steps taken in the energy sector.

He said the company would partner to assist the state in constructing the green special agro-allied industry zone, which also falls within the AfDB’s programme.

This partnership, he said, would facilitate the ease of doing business in the state and ensure self-sustained green electricity for each factory operating in the state.

“We are here for you in terms of infrastructure, power, agro-processing zones, among other projects,” Sachdeva said.

“With the kind of energy, positivity, and simplicity I have seen in you, around you, I can assure you we are going to start immediately.”

‘A THOUSAND HECTARES, DOCUMENTS READY FOR SAPZ’

Expressing excitement about the SAPZ project and partnership, Mbah said his administration had already committed huge capital in the sector and would be ready to explore the opportunities AfDB presented to the state.

He assured the financial institution that Enugu had fulfilled all the pre-conditions for the project to take off.

“I want to inform you that Enugu is ready and we have prepared all the prerequisite documentation and all the surveys you need to be able to get started with this project,” the governor said.

“We have done the environmental and social impact assessments. We have identified a sizable land that will host a special agro-processing zone, putting aside over 1000 hectares very close to the city that would be used for the project. We have also done the feasibility studies”. 

Mbah also expressed interest in working with the organisations to drive the state’s industrial revolution, adding that Enugu is being positioned to play a leadership role in the power industry — given the recent enactment of the Enugu state electricity law.

“We’re now ready to play the role of a regulator in the electricity value chain, whether it’s generation, transmission or distribution,” he said.

“So in terms of the ease of obtaining your operating license, your construction licenses, you do not need to go beyond the state when we are in the position to provide those licenses, generating license, transmitting license and distributing license.”

Mbah added that Enugu now has the regulatory commission to provide operating licenses while stressing the huge demand for electricity in the eastern region.