Nigeria Secures $210m AfDB Loan To Boost Agricultural Sector

The African Development Bank’s Board of Directors has announced the approval of a $210m loan for Nigeria’s Special Agro-Industrial Processing Zones, which it said would boost the agricultural sector.

The AfDB, in a statement on Tuesday, said:  “A $210m loan approved by the African Development Bank’s Board of Directors on Monday could impact the lives of millions of people in Africa’s most populous country.

“The loan will co-finance Phase 1 of the Nigeria Special Agro-Industrial Processing Zone Programme. The programme will help to unlock Nigeria’s agriculture sector potential. It will promote industrialisation through the development of strategic crops and livestock.”

The statement read that the loan consists of an AfDB loan of $160m and an Africa Growing Together Fund loan of $50m.

It noted that the project would support Nigeria’s efforts to raise agricultural productivity, promote investment, create wealth and jobs, and transform rural areas into corridors of economic prosperity.

The AfDB added: “Its first phase will be implemented with co-financing from other partners in the amount of $538.05m. The Special Agro-Industrial Processing Zones Programme is expected to bring economic infrastructure to rural areas of high agricultural potential.

“These zones will attract private agro-industrialist and entrepreneur investment, contribute to Nigeria’s economic and social development, and stem rural-to-urban migration. The project areas account for 19 per cent of Nigeria’s total landmass and will benefit 50.4 million people.”

The Bank explained further that the states where the first phase of the programme would be implemented were selected based on a readiness criterion and the need to ensure geographical balance across the country’s six geopolitical zones.

On his part, AfDB’s President Dr Akinwumi Adesina, said: “This first phase of the programme is not government-driven. It is government-enabled and private sector-led. That is the critical way in which you have a structural transformation of agriculture.

“It is impressive to see a strong commitment from the Nigerian government – a very strong commitment from the Nigerian Minister of Finance and from all of the state governments because they have to give the land, they make sure that all the regulations and incentives are provided.”