Investors eye improved agro exports

Stakeholders in Nigeria’s agriculture sector are optimistic about the kick-off of the Special Agro-Industrial Processing Zones, saying the initiative promises to improve agro-exports, boost food sufficiency and transform farmers into wealth creators.

The Federal Government on Tuesday in Kaduna State launched the SAPZ programme’s first phase. According to a statement from the African Development Bank, the $538m first phase began with an initial $210m commitment from the AfDB with support from the Islamic Development Bank, the International Fund for Agricultural Development and ARISE Integrated Industrial Platforms.

Chairman of the Lagos Chamber of Commerce and Industry Agriculture and Allied Group, Tunde Banjoko, described the SAPZ as “a fantastic idea” that addresses a major gap in Nigeria’s agricultural value chain.

“It is a good initiative, empowering farmers who will be producing for the factories,” he stated. “The African Development Bank has committed $538m alongside the Islamic Bank and another partner. It’s not just a matter of handing out money; there is shared commitment from the states and the private sector, which makes the model sustainable.”

Banjoko noted that the SAPZ programme, by situating processors close to raw material sources, would tackle the perennial problem of factory shutdowns due to lack of inputs.

He added, “There’ll be enough for us locally, and most of our factories that always shut down because of raw materials—I think this will address that. This is likely to increase our agro-exports in the long run.”

The agro-stakeholder urged more state governments to key into the project and fulfil counterpart funding obligations to fast-track implementation.

According to Banjoko, “The model is sustainable because the states are participating, and the private sector is also involved. For the states that have bought into it, it’s a good thing. We pray the AfDB team sees this through.”

The President of the All-Farmers Association of Nigeria, Kabir Ibrahim, aligned with Banjoko, saying the programme would be “a game-changer for smallholder farmers” if well managed.

“We welcome the programme because what it is doing is to enable us to add value to what we produce,” he said. “We are always selling whatever we produce in its primary form, and we don’t get much. It’s the man who adds value that gets much from agri-produce.”

Ibrahim rejoiced that more states had applied to host the SAPZ, exceeding the initial plan of a few zones.

“So many states have indicated their desire. And the farmers will not have to go very far to the processing zone. They can see into processing their produce and also sell to any aggregator that is there to add value,” the AFAN president explained.

He also highlighted how the SAPZ could solve Nigeria’s industrial energy challenges, stating, “The processing zone will create its power. The energy component is a threat factor because diesel is very costly. But in the processing zone, all these problems are taken care of.”

Ibrahim further noted that the SAPZ model mirrors successful agricultural clusters in countries like the United States, where farmers benefit from collective processing and mechanisation.

“With time, a lot of value will be given to agricultural produce, and there will be a growth of agribusiness,” he said. “Most farmers that are looked upon as poor will now become rich.”