The African Development Bank has onboarded 21 additional states for the second phase of its Special Agro-Industrial Processing Zones Programme.
This announcement was made by Imo State Governor, Hope Uzodinma, following the 146th meeting of the National Economic Council at the Aso Rock Villa in Abuja.
Uzodinma stated that the first phase of the programme, which is currently being implemented in pilot states including Kano, Kaduna, Kwara, Oyo, Ogun, Imo, Cross River, and the Federal Capital Territory is nearing completion.
“Phase two is now set to begin,” he confirmed, expressing optimism about the future of the initiative.
According to Uzodinma, a stakeholders meeting held two weeks ago led to the onboarding of 21 more states into the programme.
The NEC has since urged all states to participate, emphasizing the potential of the programme to revolutionize Nigeria’s agricultural sector and significantly contribute to the Federal Government’s food security goals.
In February 2024, Senior Special Adviser on Industrialisation to the AfDB President, Prof. Banji Oyelaran-Oyeyinka, revealed that the first tranche of $540 million in disbursements would be made to the pilot states.
This funding will support the development of the Agro-Industrial Processing Zones.
This announcement follows AfDB President Dr. Akinwumi Adesina’s pledge to President Bola Tinubu regarding the bank’s $520 million investment in the zones.
Adesina, during the two-day summit on A New Global Financing Pact held in Paris in June 2023, reaffirmed the bank’s commitment to supporting Nigeria’s economic policies, with a focus on inclusive development.
Speaking at the Vice President’s office, Prof. Oyelaran-Oyeyinka explained that the aim of the Special Agro-Industrial Processing Zones is to transform Nigeria’s rural areas into economic powerhouses.
The programme seeks to promote sustainable agro-industrial development by providing infrastructure, agricultural transformation centers, and farm-to-market access roads.
He added that the disbursement process is already underway for Kaduna, Oyo, and Cross River States, with plans to expedite the process for other states once their documentation is completed.
“We have raised $540 million in catalytic funding and are encouraging states to secure private-sector partners to bring in additional equity,” he said.
For the second phase of the project, AfDB is prioritizing states that demonstrate readiness and meet specific eligibility criteria, such as having feasibility reports, environmental impact studies, and a commitment to counterpart funding.
Oyelaran-Oyeyinka revealed that the demand for participation is overwhelming but emphasized the need to focus on those who act quickly.
“We have set up eligibility criteria for the states and to rank them,” he said. “The demand is enormous, but we must prioritize those who move fast.”
The expected outcomes of the second phase of the SPA-Z Programme include the development of agro-industrial processing hubs, agricultural transformation centers, and irrigated lands.
The programme will also focus on improving farmers’ access to certified agricultural inputs and extension services, as well as enhancing skills development for farmers and micro, small, and medium-sized enterprises.
Additionally, the AfDB aims to update agro-industrial zone policies and establish new regulatory institutions to ensure the programme’s sustainability.
The NEC meeting also saw a presentation from the National Agency for Science and Engineering Infrastructure which outlined its contributions to agricultural and industrial development.
NASENI proposed partnerships with state governments to advance solar power, rural electrification, and the maintenance of farm machinery.
Uzodinma explained that NASENI’s initiatives included repairing and manufacturing solar-powered tractors, supporting land reclamation efforts, and improving seaport infrastructure.
“The Council urged NASENI to help state governments repair broken-down tractors and continue their valuable work in advancing agricultural technology,” he noted.
The Council also expressed support for NASENI’s initiatives, with many subnational governments showing interest in collaborating to implement these efforts.
The new developments mark a significant milestone in Nigeria’s drive toward agricultural and industrial transformation, and both the AfDB and NASENI are set to play key roles in the country’s economic future.
