AfDB to Give Nigeria $2.2bn for Special Agro-Industrial Processing Zones

Mr Abdul Kamara, the Director General of the AfDB, Nigeria Office, made the announcement during Channels Television’s 2024 End-of-Year Review with the theme Focus on the Agriculture Sector, Food Security, Research, and AfDB Investments.

Mr Kamara revealed that the disbursement will begin in 2025, with construction and mobilization starting in selected states.

“Specifically from next year (2025), we will see contracts signed and mobilization and construction on-site will start in some states. Of course, not all the states will start together,” he stated.

According to him, the SAPZ initiative is expected to significantly boost Nigeria’s agricultural productivity, create jobs and strengthen value chains, cementing the country’s position as a leader in agro-industrial development in Africa.

The fund is designed to drive the development of agro-industrial hubs, aggregation centres, and agricultural transformation programs that aim to enhance food security and unlock economic opportunities.

According to Mr Kamara, while the AfDB Board approved the SAPZ program in 2021, startup delays were caused by the need for agreements with the federal government and co-financiers, including the International Fund for Agricultural Development (IFAD) and the Islamic Development Bank (IsDB).

“When you approve a programme, you have to have it signed with the Federal Government, especially of that magnitude. You also have to have it signed with the co-financiers. The bank had to bring in IFAD and the Islamic Development Bank as co-financiers,” he explained.

The programme will initially target seven regions, including the Federal Capital Territory (FCT), Cross River, Ogun, Oyo, Kaduna, Kano, and Kwara. Kamara highlighted ongoing collaboration with state governors to streamline processes.

“In all the seven states, we are now in conversation and are publishing the bidding documents so that we’ll shorten the process. The project is picking up, and that is not strange for very complex projects,” he said.