The African Development Bank (AfDB) has enrolled 21 states in the second phase of its Special Agro-Industrial Processing Zones (SAPZ) Programme.
This was disclosed by Imo State Governor, Hope Uzodinma, during a briefing with State House correspondents following the 146th National Economic Council (NEC) meeting at the Aso Rock Villa, Abuja.
According to Uzodinma, the pilot phase of the programme, which is ongoing in Kano, Kaduna, Kwara, Oyo, Ogun, Imo, Cross River, and the Federal Capital Territory (FCT), is nearing completion. “Phase two is about to commence,” he stated.
Uzodinma also highlighted the recent onboarding of additional states. “Two weeks ago, at a stakeholders’ meeting, 21 more states joined the programme. NEC has encouraged all states to participate, as this initiative is a potential game-changer that will significantly advance the Federal Government’s food security goals,” he added.
On February 5, 2024, the AfDB’s Senior Special Adviser on Industrialisation, Prof. Banji Oyelaran-Oyeyinka, informed Vice President Kashim Shettima that pilot-phase states would soon receive the first tranche of $540 million in funding to develop SAPZs.
This follows an earlier briefing in June 2023, when AfDB President Dr. Akinwumi Adesina assured President Bola Tinubu of the Bank’s $520 million investment in the zones. At the Paris summit on A New Global Financing Pact, Adesina pledged the AfDB’s support for Nigeria’s development agenda, emphasizing people-focused growth.
Speaking on the programme’s progress, Oyelaran-Oyeyinka explained that the SAPZs aim to transform rural areas into economic hubs through inclusive and sustainable agro-industrial development. “Phase one disbursements are underway for Kaduna, Oyo, and Cross River States, and we urge other states to expedite their documentation to access funds,” he said.
He further elaborated on phase two, which will involve 27 states. “The demand is high, but we’ll prioritize states that meet our eligibility criteria, including feasibility studies, environmental impact assessments, and a commitment to counterpart funding. This is a government-enabled but private-sector-driven initiative.”
Key expected outputs of phase two include the development of infrastructure for Agro-Industrial Processing Hubs, Agricultural Transformation Centers, irrigated lands, farm-to-market access roads, supply of certified agricultural inputs, extension services, skills training for farmers and MSMEs, updated agro-industrial zone policies, and the establishment of regulatory frameworks.
Meanwhile, the NEC encouraged states to utilize the services of the National Agency for Science and Engineering Infrastructure (NASENI), particularly for the maintenance and repair of agricultural machinery.
NASENI also presented its initiatives to the Council, proposing collaborations with state governments on solar power, rural electrification, and other industrial developments.
Governor Uzodinma stated, “NASENI is committed to supporting manufacturing, land reclamation, and seaport development. They are also producing solar-powered tractors and repairing broken-down agro equipment. NEC urged states to partner with NASENI to ensure these efforts succeed.”
He concluded, “Most states have expressed a willingness to engage with NASENI and support these impactful initiatives.”
