The plan by the African Development Bank (AfDB) and its partners to finance the expansion of the Special Agro-Industrial Processing Zones (SAPZ) programme to the tune of $1billion is encouraging. The credit facility requires counterpart funding by the states selected for the programme. SAPZ is the flagship of the AfDB initiative and a government-enabled private sector action plan aimed at quickening the transformation of the Nigerian agriculture sector value chain through industrialisation.
This is the second time in a year that the bank will be rolling out a financial package to expand the nation’s agro-industrial processing.
Under the financial plan, the AfDB will drive the implementation of the scheme to support inclusive and sustainable agro-industrial development. The programme will be a game-changer for our agriculture. During the Phase 1 of the programme launched last year, the AfDB and its partners provided $538 million to finance key projects in Nigeria. Of this amount, AfDB provided the sum of $210million, $310million came from the Islamic Development Bank and the International Fund for Agricultural Development(IFAD), while the federal government provided $18.05million.
The President of the bank, Dr.Akinwunmi Adesina, disclosed this at the Headquarters of the bank in Abidjan, Cote d’Ivoire, when governors from the North West of Nigeria visited him. He said the programme is designed and targeted to promote increased productivity value addition and market access investments that will develop strategic commodity value chain. About 25 states have been selected in the first phase of the programme. Some of the states include Imo, Ogun, Kano, Kaduna, Kwara, Oyo, Cross River, and the Federal Capital Territory (FCT). Other states have also expressed interest to participate in the agro-processing programme.
According to the laid down criteria, the economic zones must be located in rural areas of the states, and should be supported by power supply, water, roads, digital infrastructure and logistics that will allow food and agribusiness companies to locate to such zones. This is meant to put them closer to farmers in the production areas, provide market offtakes for farmers, reduce food losses, and allow the emergence of highly competitive good and agricultural value chains.
One of the objectives of the scheme is to end hunger and achieve food security. The AfDB had financed the $85 million Zaria water supply and sanitation project. There is no doubt that the bank deserves commendation for the initiative, especially at this time that food inflation has risen to 33 per cent and accounts for 65 per cent of the consumer price index. It can also explain why millions of Nigerians have been thrown into the poverty net.
As the AfDB president rightly noted, the rising food inflation in Nigeria cannot be justified because the country has more than 34 million hectares of arable land, water, with rich diverse agro ecology. AfDB should monitor the implementation of the programme. Such projects in the past did not yield the expected results because of poor supervision. AfDB must provide the infrastructure needed to expand the agro-industrial processing in the country. Indeed, the development of agriculture will guarantee the nation’s food security. There is also need for seed improvement, better land preparation, access to crop-specific fertilizers and extension services for farmers.
Unfortunately, past efforts to boost food production did not succeed. That is why Nigeria’s agricultural sector has not received the needed financial backing that will ensure food security. Most farmers are yet to change from manual to mechanized farming. The lack of irrigation infrastructure is one of the major challenges in some parts of the North. Apart from low crop yields, farmers grapple with post-harvest losses due to poor storage facilities. To actualise the target for the expansion of the agro-industrial processing, there is need to prioritize the development of rural infrastructure, farm mechanization and climate-smart agriculture. Every state should prioritize the development of agriculture. Whilst AfDB has made a huge difference in boosting economic growth in Nigeria through the SAPZ programme, the federal and state governments should complement the bank’s effort in enhancing our agro-processing industry.
This is the time to squarely address the challenges that still hamper food production. Beyond the intervention, the government should diversify the economy through adequate investments in agriculture.