The African Development Bank (AfDB) has confirmed the release of $2.2 billion for the development of Special Agro-Industrial Processing Zones (SAPZ) across Nigeria starting in 2025.
This was disclosed by Abdul Kamara, the AfDB’s Director-General in Nigeria, during a recent interview monitored by AgroNigeria.
According to Kamara, the funds will support the establishment of agro-industrial hubs, aggregation centers, and agricultural transformation initiatives across the country.
“From next year (2025), we will see contracts signed and mobilization and construction on site will start in some states. Of course, not all the states will start together,” Kamara explained.
Although the SAPZ initiative was approved by the AfDB Board in 2021, Kamara acknowledged that the project experienced delays due to various initial hurdles.
He stressed the need for extensive agreements with the Federal Government and other co-financiers before the project could move forward.
“When a programme of this magnitude is approved, it must be formally signed off with the Federal Government. Additionally, we engaged the International Fund for Agricultural Development (IFAD) and the Islamic Development Bank as co-financiers, which required further negotiations,” he said.
Kamara also highlighted recent efforts to fast-track the initiative.
“Earlier this year, we met with state governors from the participating regions to outline actionable steps for accelerating the SAPZ rollout.
“In all the seven states including the FCT, Cross River, Ogun, Oyo, Kaduna, Kano and Kwara, in each of the states, we are now in conversation with and are publishing the bidding document so that we’ll shorten the process. So, it’s picking up and that is not strange. Projects that are very complex.”
He noted that the African Investment Forum, held earlier in December, played a pivotal role in securing additional pledges from various financiers, bringing the total commitment for the SAPZ programme to $2.2 billion.
“The AfDB’s direct contribution to this initiative is approximately one billion dollars, but when combined with funds from our partners, the total value exceeds this figure. As a convener, the Bank is adept at rallying resources for impactful projects,” Kamara said.
Kamara expressed confidence in the SAPZ initiative, highlighting its potential to improve Nigeria’s agricultural sector.
He explained that the programme draws inspiration from successful models implemented in other regions and has the power to reshape agro-industrial activities in the country.