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AfDB plans $1 billion financing to boost agribusiness in Nigeria - BUSINESSDAY
Akinwumi Adesina, president of the African Development Bank (AfDB) Group, has said that the bank is planning to finance the second phase of its Special Agro-Industrial Processing Zones (SAPZ) programme with $1 billion, which would cover the remaining 28 states in Nigeria.
Adesina said this during the inauguration of a soybean plant and refinery by the Called Servant to Service (CSS) Global Integrated Farms in Gora, Karu Local Council of Nasarawa State.
The AfDB president said the ultra-modern refinery is a major milestone in Nigeria’s agricultural sector, assuring that it would contribute reducing Nigeria’s crude soybean oil imports, estimated at $62.2 million in 2023.
He also tasked the federal government to intensify efforts to increase food production locally and stem the high cost of food prices in the country. Expressing concern over the rising cost of food and the hunger crisis in Nigeria, AfDB boss stressed the need for bold policies and programmes to support local farmers and agribusinesses.
He highlighted the disparity in rice prices, comparing the current price of over N100,000 per bag to the N8,000 it cost during his tenure as Minister of Agriculture under President Goodluck Jonathan a decade ago.
Adesina further stated that the success of the farm’s operations would be greatly enhanced within the context of the development of Special Agro-Industrial Processing Zones (SAPZ).
He noted that the bank and its partners were supporting the Federal Government and implementing a $538 million programme for the development of SAPZ in seven states.
He identified the states as Cross River, Imo, Oyo, Ogun, Kaduna, Kano, Kwara and Abuja. According to him, the second phase of the programme would cover the remaining 28 states, with a financing target of a billion dollars from AfDB, the Arab Bank for African Economic Development and the private sector.
“Nigeria should have bold programmes and policy support for its farmers. It should also provide incentives for agribusinesses to support agricultural value chains, from food production to processing, value addition, packaging and market supply,” he added.
He also said that Nasarawa would be included in the second phase of the programme, adding that when established, the CSS Farms would serve as key anchor investor in the zone.
