Nigeria gets loan from AfDB for agro-industrial zones
By Jeph Ajobaju, Chief Copy Editor
Nigeria has been advanced a $210 million loan by the African Development Bank (AfDB) to create special agro-industrial processing zones as part of efforts to ensure its quest for food sufficiency stays on track.
AfDB President Akinwunmi Adesina said the loan will help unlock Nigeria’s agriculture and impact the lives of 206 million of people in Africa’s most populous country, whose food import bill amounts to N3.1 billion a year.
Adesina enthused that it would also assist in promoting industrialisation through development of crops and livestock
The facility will co-finance Phase 1 of the Nigeria Special Agro-Industrial Processing Zone Programme and the Phase 1 of the project will target seven states and the Federal Capital Territory (FCT).
It will support Nigeria’s efforts to raise agricultural productivity, promote investment, create wealth and jobs, and transform rural areas into corridors of economic prosperity, Adesina added, per The Nation.
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First phase
The first phase is expected to be implemented with co-financing from other partners in $538.05 million cash.
“A $210 million loan approved by the African Development Bank’s Board of Directors on Monday could impact the lives of millions of people in Africa’s most populous country,” Adesina said.
“The loan will co-finance Phase 1 of the Nigeria Special Agro-Industrial Processing Zone Programme.
“The program will help to unlock Nigeria’s agriculture sector potential. It will promote industrialisation through the development of strategic crops and livestock.
“AfDB financing for this programme 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.
“Phase 1 of the project will target seven Nigerian states and the country’s Federal Capital Territory.”
Adesina expressed satisfaction with the way the federal and state governments show commitment because they have to provide the land and ensure that all the regulations, as well as incentives, are provided.
“This first phase of the programme is not government-driven. It is government-enabled and private sector-led. That is the critical way in which you have 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.”
