AfDB to invest US$1B to finance second phase of agro-industrial zones in Nigeria

NIGERIA – Akinwumi Adesina, President of the African Development Bank (AfDB) Group, has announced plans to provide US$1 billion in financing for the second phase of its Special Agro-Industrial Processing Zones (SAPZ) initiative. 

This phase aims to expand the programme to 28 additional states across Nigeria.

Adesina shared this during the opening ceremony of a soybean processing plant and refinery established by CSS Global Integrated Farms in Gora, located in Karu Local Government Area of Nasarawa State.

The AfDB president stated that the state-of-the-art refinery marks a significant step forward for Nigeria’s agricultural industry. 

He emphasized that it would help reduce the country’s dependence on imported crude soybean oil, which cost Nigeria an estimated US$62.2 million in 2023.

During the event, Adesina urged the federal government to prioritize increasing domestic food production to address rising food prices and hunger. 

He expressed concern about the high cost of food, comparing the current price of a bag of rice, which exceeds US$127 (over N100,000), to its price of around US$10 (N8,000) during his tenure as Nigeria’s agriculture minister a decade ago.

Adesina also highlighted the importance of supporting farmers and agribusinesses through bold initiatives and effective policies. 

He pointed out that the success of projects like the soybean plant could be significantly improved through the SAPZ programme.

According to him, the AfDB and its development partners are currently collaborating with the federal government to implement a US$538 million SAPZ project in seven states: Cross River, Imo, Oyo, Ogun, Kaduna, Kano, Kwara, as well as in Abuja.

Adesina revealed that the second phase of the programme, which will cover the remaining 28 states, will be funded through a US$1 billion investment from the AfDB, the Arab Bank for African Economic Development, and private sector stakeholders.

The SAPZ initiative is designed to promote agricultural productivity by establishing dedicated zones that integrate agricultural production with processing facilities, creating opportunities for economic growth and reducing reliance on imports.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates

Newer Post

Thumbnail for AfDB to invest US$1B to finance second phase of agro-industrial zones in Nigeria

South Africa’s Red Meat Industry to launch technology transfer campaign to meet Saudi Arabia’s export requirements

Older Post

Thumbnail for AfDB to invest US$1B to finance second phase of agro-industrial zones in Nigeria

Tanzania experiencing growth in meat production, exports, and livestock sector