AfDB and others advance $520 million to Nigeria’s agriculture sector

The African Development Bank (AfDB) has provided $520 million in support to Nigeria’s agricultural sector.

The financing is a joint support from the Islamic Development Bank (IDB) and the International Fund for Agricultural Development (IFAD) and is intended to establish special agro-processing zones in seven states and the FCT, enabling private agribusinesses to set up industries that process and add value to agricultural products.

This was disclosed on Monday by the AfDB Vice-President, Regional Development, Integration and Business Delivery Complex, Mrs. Marie Akin-Olugbade in Abuja during the second interactive session and workshop on Bankable Business Plans/Business Plans for Youth and Women in Agriculture.

The financial support is in addition to the US$134 million the country has already provided to Nigeria for emergency food production to help curb food price inflation by boosting local production of wheat and cassava under the National Agricultural Growth Scheme.

Ms Akin-Olugbade said: “With $4.5 billion mobilised across 28 zones in 11 countries, we are not just growing crops – we are cultivating entire value chains, creating jobs and boosting the rural economy.

“Here in Nigeria, together with the Islamic Development Bank and the International Fund for Agricultural Development, we have provided $520 million to support the establishment of Special Agri-Processing Zones in 7 states and the FCT, enabling private agribusinesses to set up industries that process and add value to agricultural produce.

“The African Development Bank Group has provided US$134 million to Nigeria for emergency food production to help reduce food price inflation by boosting local production of wheat and cassava under the National Agricultural Growth Scheme.”

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According to the AfDB, the aim of the workshop is to encourage the active participation of women and youth in Nigeria in agriculture. The AfDB considers the agricultural sector as the only viable alternative for creating jobs for youth and women.

Ms Akin-Olugbade expressed concern that African countries are neglecting agriculture. She noted that agriculture remains an underutilized sector that feeds entire African citizens, while the leftovers can be exported.

She said: “Let us be clear about the stark reality: our continent is the youngest in the world. More than 636 million of our population are young people between the ages of 15 and 35, a number that is expected to rise to 830 million by 2050. This demographic dividend presents an unprecedented opportunity for socio-economic transformation, particularly in agriculture – a fertile ground for innovation, wealth creation and transformative impact. Yet we face significant challenges.

“In Nigeria, 70% of the population is under 30 years of age and faces high levels of poverty, unemployment and food insecurity. Nigeria’s agricultural sector contributed 25.8% to the country’s GDP in 2021 and employs 36.4% of the population.

“Across the continent, agriculture accounts for approximately 23% of Africa’s gross domestic product (GDP) and employs more than 60% of the continent’s workforce.

“Studies have shown that growth in the agricultural sector is two to four times more effective in reducing poverty than growth in other sectors. Africa is home to 65% of the world’s remaining agricultural land, enough to feed 9.5 billion people worldwide.”

Mrs. Akin-Olugbade explained that agriculture is an industry and the expected size of the agricultural market will reach about US$1 trillion by 2030.

“These numbers alone demonstrate the central importance of agriculture as a cornerstone of Africa’s economy and a solution to the continent’s and the world’s food insecurity. The question is not whether Africa can feed itself, but how quickly we can do so. That’s why we’ve launched transformative initiatives, like our $25 billion Technologies for African Agricultural Transformation (TAAT) program to revolutionize African agriculture. Through this initiative, we’re bringing advanced agricultural technologies to more than 40 million farmers as we strive to make Africa food secure – by 2030.”

She pointed out that Ethiopia, a country that has shown remarkable resilience in the face of historical food security challenges, has become self-sufficient in wheat in just five years and is now a net wheat exporter thanks to this initiative. In Sudan, wheat production has increased by more than 20%, despite its vulnerability.

“Here in Nigeria, we have supplied 6,750 tonnes of certified heat-tolerant wheat seeds to 118,000 farmers in the 2023/2024 planting season, resulting in the planting of 120,000 ha of wheat. A total of 277,000 ha of wheat was planted and Nigeria harvested over 600,000 tonnes of wheat grains this year, the largest in the country’s history,” she said.

According to her, the bank’s Special Agro-Industrial Processing Zones (SAPZs) initiative will provide economic infrastructure in rural areas with high agricultural potential, allowing investment by private agro-industrialists and entrepreneurs, increasing productivity and transforming rural life.

Ms Akin-Olugbade said: “Africa has enough land to feed over 9 billion people in the world. And yet, as Africa, we import food! In 2015, we spent $35 billion a year on food imports. We are racing towards $100 billion. WHY?”

Minister of Agriculture and Food Security, Senator Abubakar Kyari, said the administration of President Bola Ahmed Tinubu prioritizes agriculture and food security, describing it as one of the key points in the government’s eight-point agenda.

The Minister noted that the government is ready and willing to support 21.1 percent of Nigerian youth who want to participate in agriculture. He also commended the AfDB for its continued support to Nigeria and the African region.

Mr Lamin Barrow, Director General of the AfDB (West Africa Region), earlier in a welcoming speech described Nigeria as the largest shareholder.

He said that since the start of operations in the country, “cumulative financing approvals have reached $10.9 billion. Our portfolio currently stands at $4.9 billion in support of public and private sector projects. Over the past eight years since President Adesina took office, the African Development Bank has prioritized the High 5 – Light Up & Power Africa; Feed Africa; Industrialize Africa; Integrate Africa and Improve the quality of life for the people of Africa, as accelerators for achieving the SDGs and the targets set out in the African Union’s Agenda 2063. The projects and programmes supported during this period have impacted more than 400 million people.”

NIGERIAN TRIBUNE