AfDB approves $210m loan to unlock agriculture sector potential
The African Development Bank (AfDB) has approved the sum of $210 million in loans for Nigeria to impact the lives of millions of people in Africa’s most populous country.
This was disclosed by the bank via a statement made available to Nigerian NewsDirect on Tuesday.
According to the lender, the loan will co-finance Phase 1 of the Nigeria Special Agro-Industrial Processing Zone Program.
It stated, “A $210million loan approved by the African Development Bank’s Board of Directors on Monday could impact the lives of millions of people in Africa’s most populous country.
“The loan will co-finance Phase 1 of the Nigeria Special Agro-Industrial Processing Zone Program. The program will help to unlock Nigeria’s agriculture sector potential. It will promote industrialization through the development of strategic crops and livestock.
“African Development Bank financing for this program represents one of the Bank’s most ambitious operations in terms of scale and scope to date. It is made up of an African Development Bank loan of $160 million and an Africa Growing Together Fund loan of $50 million. Phase 1 of the project will target seven Nigerian states and the country’s Federal Capital Territory.
“The project will support Nigeria’s efforts to raise agricultural productivity, promote investment, create wealth and jobs, and transform rural areas into corridors of economic prosperity. Its first phase will be implemented with co-financing from other partners in the amount of $538.05 million.
“We have several million hectares of available arable land and have embarked on the creation of Special Agriculture Processing Zones across the country.”
The Special Agro-Industrial Processing Zones Program is expected to bring economic infrastructure to rural areas of high agricultural potential. These zones will attract private agro-industrialist and entrepreneur investment, contribute to Nigeria’s economic and social development, and stem rural-to-urban migration.
The project areas account for 19% of Nigeria’s total landmass and will benefit 50.4 million people. The states where the first phase of the program will be implemented were selected based on a readiness criterion as well as the need to ensure geographical balance across Nigeria’s six geo-political zones.
In addition to African Development Bank financing for Phase 1 of the Nigeria project, the Islamic Development Bank and the International Fund for Agricultural Development will provide parallel co-financing. Nigeria’s federal and state governments will contribute both in cash and in-kind.
