Kogi state government has secured $100 million loan from the African Development Bank (AfDB) to execute some special agro-industrial processing zones (SAPZ) projects.
Asiru Idris, Kogi state commissioner of finance and budget planning, announced this during a stakeholders assessment meeting in Lokoja on Tuesday.
The state government said the SAPZ will enhance national food and nutritional security, optimise the export of value-added agricultural commodities and thus improve the quality of livelihoods through wealth creation for rural farming communities.
“The project will create employment for two million people in the state and by extension, curb poverty, reduce youth restiveness and open doors for private investors,” Idris said.
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According to him, 280 hectares of land will be acquired for the setting up of the project which will cut across five LGAs: Kabba/Bunu, Okehi, Adavi, Ijumu and Lokoja.
Idris said it will benefit farmers, processors, aggregators and distributors to operate in the same vicinity to reduce transaction costs and share business development services for increased productivity and competitiveness.
In his remarks, David Apeh, commissioner for agriculture in Kogi, said the project will bring adequate infrastructure (energy, water, roads, ICT) to rural areas of high agricultural potential, adding that it will attract investments from private agro-industrialists and entrepreneur.
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Bassey Uzodinma, a coordinator of the project, said the project is expected to be completed in the next 42 months.
In March 2020, the state government said it received an approval from the national assembly to obtain a foreign loan of $100 million.
It said the loan will be used to establish a food processing zone and to modernise agricultural processes in the state.
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