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Home Economy Finance

African Development Bank Offers $520b to Boost Food Production in Nigeria

by Justice Godfrey Okamgba
October 25, 2022
in Finance
0
UBA
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Nigeria launched the Special Agro-industrial Processing Zones (SAPZ) program, an initiative of the African Development Bank, on Monday, beginning its long path to end hunger and attain food security.

The Special Agro-industrial Processing Zones are brand-new economic zones in rural areas that will be completely supported by infrastructure (power, water, roads, digital infrastructure, and logistics), allowing food and agribusiness companies to locate within such zones, according to African Development Bank President Dr. Akinwumi Adesina.

They will be situated near farmers in catchment areas for agricultural output, which will give farmers access to markets, support processing and value addition, lower food losses, and support the establishment of fiercely competitive food and agricultural value chains.

The launch ceremony in the capital Abuja kick-starts the implementation of phase one of the SAPZ program in eight states across the country.

The African Development Bank is providing funding of $210 million, with the Islamic Development Bank and the International Fund for Agricultural Development (IFAD) jointly providing $310 million. The Nigerian government is contributing $18.05 million.

President Muhammadu Buhari of Nigeria praised the initiative and stated, “If the Special Agro-industrial Processing Zones program delivers on its objectives, and we have no doubt that it will, then we would in less than a decade have dealt a fatal blow to food insecurity, created millions of good paying agro-industrial jobs and opportunities, and radically improved export earnings from agriculture.” Vice President Professor Yemi Osinbajo also praised the program.

Adesina, a former minister of agriculture of Nigeria and a World Food Prize Winner, said: “Hunger in Nigeria cannot be justified. Nigeria has the land, with 34 million hectares of arable land with rich and diverse agroecology. It has water. It has the labor. It has great sunshine. Nigeria must achieve zero hunger. There is no reason for anyone to go hungry in Nigeria.”

To help Africa prevent a food crisis from the Russia-Ukraine war, the African Development Bank launched a $1.5 billion African Emergency Food Production Facility to support 20 million farmers to access climate-resilient agricultural technologies and produce 38 million metric tons of food valued at $12 billion.

“The African Emergency Food Production Facility provided $134 million to Nigeria, one of the highest levels of support across African countries. I would like to thank the Japanese International Development Agency (JICA) for co-financing this with an additional $110 million. That means we collectively made available $244 million for emergency food production in Nigeria,” the bank group head said.

Noting that the latest Global Hunger Index (2022) ranks Nigeria 103rd among 121 countries facing hunger crisis in the world, Adesina called for “greater action, responsiveness, and delivery to avert a food crisis in Nigeria”.

Nigeria has the land, with 34 million hectares of arable land with rich and diverse agroecology

“Nigeria must decisively tackle insecurity challenges that prevent farmers from going to the farms. Food security needs national security,” said Adesina.

According to the President of the Islamic Development Bank, Dr. Muhammad Al Jasser, “with the disruption of supplies arising from the war, Africa now faces a shortage of at least 30 million metric tons of food imports from Russia and Ukraine, especially for wheat, maize, and soybeans. Urgent actions are needed to prevent a food crisis in Africa.”

He expressed confidence Nigeria will efficiently implement the SAPZ program which will boost food production, reduce food price inflation, and transform the agriculture sector while assuring food security and creating jobs.

The Associate Vice President of the International Fund for Agricultural Development Ms. Katherine Meighan, said her organization is determined to contribute to the overall goal of the SAPZ program by empowering 100,000 direct beneficiaries including smallholders, small processors, traders, and service providers in Ogun and Kano State, with a strong focus on youth and women.

“Our empowerment strategy aims to equip farmers and smallholders to take advantage of the markets created by the SAPZ to sustainably enhance their income through income-generating activities, household food security and nutrition, and resilience to climate change,” said Meighan.

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  • Justice Godfrey Okamgba
    Justice Godfrey Okamgba

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