AfDB, FG injects $500m on Agro processing zones

·         FACAN President hails the development

The African Development Bank (AfDB) and the Federal Government FG) are set to inject $500 million into the development of four Special Agro-Processing Zones (SAPZs) across the country before August, 2020 for the purpose of the private sector active participation in value addition to agricultural produce.

This was disclosed by the AfDB Senior Special Adviser (SSA) on industrialization, Prof. Oyebanji Oyelaran Oyeyinka during a two day workshop held in Abuja last week.

Oyeyinka stated that the project worth is $500 million, and it would be private sector driven with its network spread across the four geo-political zones in the country towards enabling farmers and other stakeholders at the value chains of the agricultural productivity to have access to the facilities at the sites for enhanced productivity and competitiveness.

AfDB SSA said that the fund for the SAPZs development is expected to be disbursed by August of this year through the private sector partners saying “the processes we are putting in place now are the requirements by the bank. We have to do identification, reappraisal and write a report, to make sure that the clients are involved. We are hoping that by July or August, we will go to the board and get the money disbursed in Nigeria, because it is already budgeted.

He stated further that “for us, the central actors are the private sector people, we don’t want to make it a government thing, and we want to make sure it is private-sector driven. Companies like the Flour Mill, Dangote Groups; we are talking to all of them, even the smaller ones to come on board. Those are the ones that will set up factories and farms and so many other things.  We also have the Bank of Industry (BoI), Nigerian Agricultural Insurance Corporation (NAIC), Nigeria Incentive- based Risk Sharing System for Agricultural Lending (NIRSAL), and National Sovereign Authority which will be helping us to package infrastructure’’

 The Minister of Agriculture and Rural Development, Alhaji Sabo Nanono speaking on the occasion  emphasised on the strategic role the  SAPZs would play as regards   economic diversification cum repositioning for sustainable economic growth and commercial agriculture development.

According to the Minister, “SAPZs will boost value addition to Agricultural produce, improve competitiveness and in effect, reduce food imports, assure food sufficiency, create jobs for teeming Nigerian youths and in turn grow the nation’s economy by generating more revenue’’

The Managing Director, Bank of Industry (BOI) Olukayode Pitan in his remarks said that his bank had spent not less than N200 billion on SAPZs in the last four years and about 1800 women and young people have benefited from it through employment creation pointing there was no need for Nigeria to be importing foods in the face of abundant natural blessings.

According to the BOI boss “We have spent N200bn on Agro-processing industries in the past four years and 1800 women and young people have benefited from it through employment. There is no need for food importation. We need to stand up and be the leaders of Africa that we are made to be.”

Meanwhile, the President, Federation of Agricultural Commodity Associations of Nigeria (FACAN) Dr. Victor Iyama has hailed the development saying it was the best way to go while speaking with foodfarmnews saying ‘’ the step taken by the FG and AfDB was the right way to go as farmers will be well attended to during the course of the project’’