Nigeria is a country that has been dependent on oil for much of its 62 years as an independent nation. However, it is by and large an agricultural nation. In fact, there are many who would say that oil has taken much focus away from agriculture.
There have been many landmark policies and programs in agriculture over the years. In 1963, the blueprint was all about surplus extraction and export orientation.
The year 1972 brought the National Accelerated Food Production Programme, a pillar of the then Gowon administration. There followed Operation Feed the Nation in 1976 by the Obasanjo administration, and Green Revolution in 1980 by the Shehu Shagari administration.
In more recent years, the Jonathan administration introduced the Growth Enhancement Scheme, which revolutionized Nigeria’s agriculture value chains under the then Minister of Agriculture Akinwumi Adesina. Since then, we have seen follow-up on rice production as a centrepiece of economic growth under the current Buhari administration.
Agriculture employs% of Nigeria’s population. It is a principal contributor to the local economy. Nigeria has about 70.8 million hectares of agricultural land. But the country is yet to actualise its full potential in agriculture. It, therefore, makes sense that the federal and state governments are marshalling financial and technological resources for the sector.
A new program introduced by the African Development Bank is about to revolutionize agriculture in Nigeria and African countries.
Senior officials from three international development institutions—the African Development Bank, the Islamic Development Bank (IsDB), the International Fund for Agricultural Development (IFAD)—and other partners will join Nigerian officials on the 24th and 25thof October, 222 to launch the Special Agro-Industrial Processing Zones (SAPZ) program in Nigeria.
The Special Agro-Industrial Processing Zones project is a flagship scheme of the African Development Bank Group’s Feed Africa strategy. President Muhammadu Buhari, African Development Bank President Akinwumi Adesina, representatives from IFAD, IsDB, as investors, and key private sector players will launch phase one of the multibillion-dollar program in Abuja.
The Special Agro-Industrial Processing Zones are designed to cluster agro-processing activities within areas of high agricultural advantage. The zones bring together agricultural producers, processors, aggregators, and distributors to operate within a sphere of comparative advantage They will reduce transaction costs and drive productivity and enterprise.
The program’s first phase will be implemented in seven Nigerian states, namely Cross River, Imo, Kaduna, Kano, Kwara, Ogun, Oyo, and the Federal Capital Territory.
For Cross River state, the value chain commodities are cocoa, rice, and cassava. In Imo state it is livestock, notably diadairyoducts and cattle as well as poultry, maize, soybeans an,d cassava. In Kaduna state, the commodities are Tomato, maize, soybeans an,d ginger Kano state will focus on tomatoes, rice an,d groundnuts. Kwara state will look to livestock, while Ogun state will prioritize cassava, rice, poultry and fisheries The value chain commodities in Oyo state will be cassava, soybeans, and rice, and the Federal Capital Territory will dwell on beef and dairy products as their livestock products.
The Special Agro-Industrial Processing Zones programme has four broad components. They are designed to support the development of an enabling environment including adapted infrastructure for agro-industrial hubs. Secondly, they will improve agricultural productivity and enterprise development to enhance agricultural value chains and job creation in catchment areas. Third, the program supports agro-industrial zone policy and institutional development. The fourth component of the program is coordination and management.
Key expected outputs of the first phase of the program are development of infrastructure for eight agro-industrial processing hubs and fifteen agricultural transformation centres. Phase one will also result in connecting2,300 hectares of irrigated land and farms to market access roads. There will be a supply of certified agricultural inputs and extension services. Other phase 1 outputs will be skills development for farmers and micro, small and medium-scale enterprises, and an updated agro-industrial zone policy with a special regulatory regime.
Phase 1 will be implemented over 24 months. The total program will cost $538.05 million net of taxes.
The African Development Bank will provide a loan of $160 million (29.7%of total cost, together with an Africa Growing Together Fund loan of $50 million (9.3%). The Islamic Development Bank and the International Fund for Agricultural Development will provide parallel co-financing of $150 million (27.9%) and $100 million (18.6%), respectively.
The first phase of the Nigeria SAPZ program is co-financed by key development partners to the tune of $538.05 million. The African Development Bank is providing $210 million, and the Islamic Development Bank and the International Fund for Agricultural Development will provide combined funding of $310 million. The government of Nigeria is contributing $18.05 million.
The contribution by the African Development Bank and partners is catalytic, as more private sector partners bring in equity contribution. This is consistent with the SAPZ operating principle of government-enabled-private sector-driven agro-industrialisation.
In January 2022, several state governors visited the African Development Bank in Abidjan. They were Governor Nasir el-Rufai of Kaduna state; Governor Dapo Abiodun of Ogun state; Governor Seyi Makinde of Oyo state; Governor Hope Uzodimma of Imo state, and Uche Orji, former chief executive officer of the Nigeria Sovereign Investment Authority They discussed their SAPZ programs with Dr. Adesina and resolved to advance them.
El-Rufai said: “We are committed to the SAPZ program, all of us as governors, and I speak also on behalf of the president of Nigeria.” Abiodun said: “This promises to be a very successful and transformational initiative, for Ogun State and the country. This initiative is an important step toward reducing unemployment, a challenge that we face in Ogun State, with the growing number of educated young people that are completing their studies with no jobs. There is a nexus between unemployment and insecurity.”
Orji said agriculture was a focal point of his agency. He said: “The NSIA pledges to work with governors to ensure that procurement is done professionally and on time.” He said the agency owned 52% by states, and 48% by the federal government, would play a leading role in the execution of the program.
SAPZ programme implementation will begin effectively after this month’s launch and a completion of signing agreements.
Coming at a time the federal government is seeking to sufficiently diversify Nigeria’s economy away from crude oil dependence, the program promises to be far-reaching in helping Nigeria realise its full agricultural potential.
Fredrick Nwabufo is a writer and journalist
