AfDB Initiates $540 Million Agro-Industrial Fund Disbursement Across Nigeria

African Development Bank (AfDB) Initiates $540 Million Agro-Industrial Fund Disbursement Nationwide

In a significant development, the African Development Bank (AfDB) has kicked off the first phase of disbursing a substantial $540 million in Agro-Industrial Funds.

This initiative is geared towards fostering the development of Special Agro-Industrial Processing Zones (SAPZs) across Nigeria.

Prof. Banji Oyelaran-Oyeyinka, the Senior Special Adviser on Industrialization to the AfDB President, revealed this groundbreaking news on Monday during a presentation to Vice President Kashim Shettima at the Presidential Villa.

The disbursement is part of the Nigerian government’s strategic efforts to bolster food security in the country.

Development Across States

Three states—Oyo, Kaduna, and Cross River—are set to benefit from the initial phase of SAPZ development, with others poised to receive funding once their documentation processes are complete.

Oyelaran-Oyeyinka emphasized the collaborative nature of the initiative, stating, “It is a government-enabled project but private-sector driven.”

Objectives of SAPZ

The SAPZ initiative, a brainchild of the African Development Bank, aims to transform rural landscapes into thriving economic zones, leveraging the potential of commercial agriculture and food production.

The primary objective is to support inclusive and sustainable agro-industrial development in Nigeria.

Current Progress

During the presentation, Oyelaran-Oyeyinka outlined the current progress, stating,

The phase one of the project is at the point of disbursement. Kaduna, Oyo, and Cross River States are all in the process of receiving disbursements.

“The Special Agro-Industrial Processing Zones (SAPZ) is an initiative of the African Development Bank that is aimed at turning the rural landscape into economic zones of prosperity and harnessing the power of commercial agriculture and food.

“The primary objective is to support inclusive and sustainable agro-industrial development in Nigeria. The phase one of the project is at the point of disbursement. Kaduna, Oyo and Cross River States are all in the process of receiving disbursements and we hope that the other states can speed up with their documentation so that we can fast-track these states.

“We raised $540,000,000 in catalytic funding and we expect every state to find a partner that will bring equity and join up with them. It is a government-enabled project but private-sector driven”

However, he urged other states to expedite their documentation to facilitate a swift disbursement process.

Funding Model

The $540 million in catalytic funding is expected to be complemented by equity contributions from state partners.

Oyelaran-Oyeyinka urged every state to find a partner to join forces with, emphasizing the collaborative and private-sector-driven nature of the project.

Expansion Plans

Highlighting the expansive reach of the SAPZ initiative, the SSA to the President of the AfDB noted that the inaugural phase spans seven states: Cross River, Imo, Kaduna, Kano, Kwara, Ogun, and Oyo, alongside the Federal Capital Territory (FCT).

Ogun state, having found a project partner, opted not to take the loan, thereby making room for distribution to other states.

Future Phases

Looking ahead, Oyelaran-Oyeyinka disclosed plans for the next phase involving 27 states.

Acknowledging the substantial demand, he emphasized the need for prioritization based on the readiness of states.

Eligibility criteria include the submission of a feasibility report, an environmental impact study, and a commitment to counterpart funding.

This pioneering initiative not only addresses food security concerns but also serves as a catalyst for economic transformation across Nigeria.

As the SAPZ project unfolds, it promises to reshape rural economies, laying the groundwork for sustained prosperity and growth.