The African Development Bank’s (AfDB) board has offered Nigeria a $210 million facility for the co-financing of the first phase of the Special Agro-Industrial Processing Zone Programme (SPAIZ).
The bank said in a statement that the first phase would be implemented with co-financing from other partners at $538.05 million.
Other funding institutions include the Islamic Development Bank and the International Fund for Agricultural Development that would provide parallel co-financing while Nigeria’s federal and state governments would contribute both in cash and in kind.
The phase is designed to concentrate production, processing, storage, transport, and the marketing of commodities such as cotton or maize, increase productivity, competitiveness and reduce logistic costs.
The funding facility would target seven Nigerian states and the country’s Federal Capital Territory.
The statement added that the project areas would account for 19 per cent of Nigeria’s total land mass and would benefit 50.4 million people.
“The Nigeria Phase 1 Zone construction is expected to augment the following value chain commodities: Cross River State – cocoa, rice and cassava; Federal Capital Territory – beef and dairy livestock; Imo State – beef and dairy livestock; Kaduna State – tomato, maize and ginger; Kano State – rice, tomato, groundnuts and sesame oil; Kwara State – livestock; Ogun State – cassava, rice, poultry and fisheries and Oyo State – cassava, soybean, rice,” AfDB said.
It further explained that the project was envisaged to support Nigeria’s efforts to raise agricultural productivity, promote investment, create wealth and jobs, and transform rural areas into corridors of economic prosperity.
The statement quoted the AfDB president, Dr. Akinwumi Adesina as saying: “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 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.”
It also quoted the director general of the AfDB’s Nigeria country office, Mr. Lamin Barrow as saying that the scheme would empower 1.5 million households.
“Phase 1 of the Nigeria SAIPZ program will mobilise private sector investment in the agro-industrial hubs and agricultural transformation centers.
“It will impact some 1.5 million households as direct beneficiaries, with a target of creating 400,000 direct jobs and up to 1.6 million indirect jobs.”
