AfDB $520m SAPZs initiative: Synchronising policies to take full advantage for Nigeria’s economy

The narratives of resuscitating the Nigerian economy have remained on the echoes of reverberating chorus which would not leave the mouth of many compatriots. Even to the simple, reviving the economy is, no doubt, nothing but an alarming cry that demands emergency approach to cushion the worsening of economic conditions in the Country. However, beyond mere recognition of economic woes and an awareness of the need for remedy, the ways to resuscitate the economy from the mire of negativities become the most cogent subject on such discourse.

While submissions on models to adopt in addressing the deformities abound, the fronting of agriculture as a sector central to changing the narratives of the economy has remained cogent. The tenability of the emphasis placed on agriculture as a measure towards revamping the economy, has been structured along developing a model of a diversified economy where beyond oil & gas, the economy has other resting pillars upon which it can thrive. Having such a structure, would then produce a succinct absorber to cushion the effects of the vagaries of oil productivity and prices – the inconsistencies of which have exposed the Nigerian economy to the susceptibility of instabilities.

Given the comparative advantage the Country is believed to have in agriculture with expression of wealth of both, human and topographic resources, which are well known to be of depth advantage to propelling an agriculture-driven economy, the call for turning deliberate attention to the sector has been resounding. This has been codified in the reverberating echoes, particularly with the recent strains, which has seen the economy headed for the precipice.

As the call continues to reverberate, it is indisputable that such move would demand deliberate navigations with strong strategies to achieve meaningful results. It is evident that building a sector, agriculture, upon which the economy shifting the concentration from oil to spread the balance by resting upon another pillar with formidable structure, demands huge investment with strategic policies. However, it is apparent that the level of investments in the sector still remain very insignificant compared to such desideratum. It is no less true that the profile of policy system in the Country is still very uncoordinated to achieve such desired result. The profile of having a well seated system of interconnected policies working towards an architecture of a virile agriculture sector upon which the economy can rely, is still very much far from sight.

As cognisance of the importance of agriculture in revamping the Nigerian economy continues to rise, it has been noted that beyond the Country itself, the African continent would have a pride of benefits if the Country’s agriculture sector functions at the height of its potentials. Investments in the sector may appear to be receiving some notable appeals recently, but this is not without challenges, some of which are deep-seated deficiencies posing huge risk against such dynamics.

Last Wednesday, September 1, 2021, the Director-General of African Development Bank’s Nigeria Country Department, Lamin Barrow, had disclosed that the Bank and its development partners are mobilising $520million to co-finance the first phase of Special Agro-industrial Processing Zones in Nigeria. As contained in a statement by the Bank last Wednesday, titled, ‘Federal and state governors endorse Special Agro-industrial Processing Zones Programme: African Development Bank and partners to mobilise $520m for Phase 1,’ the Director-General, who spoke at a  high-level briefing session held on Monday, noted that the zones would be rolled out in 18 African countries, including Nigeria. He was quoted: “The bank and its development partners are mobilising $520m to co-finance the first phase of the programme in Nigeria, be implemented in phases across six geopolitical zones.”  The statement had said representatives of the AfDB, the International Fund for Agricultural Development and the Islamic Development Bank, provided progress updates on the scheme, following their consultations with key stakeholders within the public and private sectors.

Subsequently, the Minister of Finance, Budget, and National Planning, Zainab Ahmed, in response to the disclosure, had affirmed that: “The Federal Government is committed to successfully implementing the programme.”  According to her, all the 36 states in Nigeria and the Federal Capital Territory will be eligible to participate in the SAPZ programme. She mentioned that 20 states – including  Kaduna, Kano, Kwara, Imo, Cross River, Ogun, Oyo, Bauchi, Lagos, Niger, Jigawa, Ekiti, Lagos, Taraba, Benue, Sokoto, Ondo, Nasarawa, Gombe and Kogi, and the FCT – had already indicated interest in participating in the first phase of the scheme.

The initiative to create Special Agro-industrial Processing Zones (SAPZ) – public-private partnerships, which is aimed at developing priority value chains through developing infrastructure in rural areas, focused on finishing and transforming raw materials and commodities, have been proven with high capacities to create jobs, develop skills, and facilitate agricultural value chains development in Countries where they have been established. No less would be realised in Nigeria if only the Government of Nigeria strategically takes advantage of the initiative to the fullest. Special Agro-industrial Processing are a flagship initiative of the Bank’s ‘Feed Africa’ strategic priority. They aim to provide end-to-end solutions and services that de-risk production, processing, and marketing operations of private sector actors as they boost manufacturing and transformation capacity in production areas. The end result is improved livelihoods for millions in the rural areas as well as a reduction in poverty. The Nigeria Special Agro-industrial Processing Zone programme consists of four mutually reinforcing components – infrastructure development and agro-industrial hubs management; agriculture productivity and production; policy and institutional development; and programme coordination and management. Agricultural Economists have averred that the zones would enable producers, processors, and the entire agricultural value chain in Nigeria to become more functional and profitable.

The place of strategic policies by the Nigerian Government to taking full advantage of the investments is sacrosanct. At the meeting, African Development Bank Group’s Vice President for Agriculture, Human and Social Development, Beth Dunford, had noted that, “Private sector investment is critical to the success of the SAPZs, as well as having the right policies in place. Action is needed now. The African Development Bank is ready to accelerate this action.” In the same vein, African Development Bank’s Vice President for Private Sector, Infrastructure and Industrialization, Solomon Quaynor, had noted that “the quality of industrial policies and design will influence the quality of private sector operators that can be attracted into the Special Agro-industrial Processing Zones.”

Hence, the place of crafting policies and blending measures to develop a system around which the initiative would fitly work to position the Country at a vantage point to exploit the most plausible advantages accruable from such investments to the benefit of strengthening the Country’s economy, is pertinent. It is high time the Government of Nigeria become awaken to the necessity of administrative acumen where proactive intelligence is the nucleus driving the orientation of governance. It is under such foresight that the Country can be positioned strategically to always take advantage of events, particularly those cutting across the frontiers of nations, for her benefits.

While the Minister of Finance, Budget and National Planning had expressed commitment of the Federal Government, it is noteworthy that beyond such affirmation, giving expression to the same with proactive strategies backed by seasoned policies to navigate the path of the initiative towards the full advantage of stimulating growth in the agriculture sector and, by and large, the Country’s economy is key. Hence, synchronising policies through systemic approach to come up with an architecture of harmonised estates of possibilities with strong expression of complementarity, becomes important to eliminate inconsistencies that may pose strains against accruing the possible best advantages from the intending investments.