AfDB to release $2.2b Nigerian agro-industrial fund from 2025

This announcement was made by Abdul Kamara, Director General of the AfDB Nigeria Office,  End-of-Year Review themed, ‘Focus on the Agriculture Sector, Food Security, Research, and AfDB Investments.’

“Starting next year (2025), we will see contracts being signed, mobilization efforts, and construction commencing in some states, though not all states will begin simultaneously,” Kamara stated.

He explained that the funds would be directed towards establishing agro-industrial hubs, processing facilities, aggregation centers, and agricultural transformation initiatives.

Kamara noted that although the AfDB Board approved the SAPZ project in 2021, its implementation faced delays due to various factors.

“When a program of this scale is approved, agreements must be signed with the Federal Government and co-financiers. The Bank collaborated with IFAD (International Fund for Agricultural Development) and the Islamic Development Bank to secure co-financing,” he said.

To accelerate the project, Kamara revealed that AfDB had met with state governors from the participating regions, including the FCT, Cross River, Ogun, Oyo, Kaduna, Kano, and Kwara states. These meetings resulted in the publication of bidding documents to streamline processes.

“The project is gaining momentum. At the recently concluded African Investment Forum, we secured commitments from various financiers amounting to $2.2 billion,” Kamara added.

He highlighted the significant role of the AfDB as a convener, noting that while the Bank is contributing around $1 billion, additional funding from partners will increase the overall investment.

“The SAPZ initiative is poised to deliver impactful results, as we’ve seen in similar projects elsewhere,” he concluded.