African Development Bank to Inject $540 Million into Nigeria’s Special Agro-Industrial Zones

Taiwo Ajayi
2 Min Read

The African Development Bank (AfDB) has unveiled plans to allocate $540 million towards the establishment of Special Agro-Industrial Processing Zones (SAPZs) in Nigeria. This initiative, announced amid growing calls for tangible progress by Vice President Kashim Shettima, aims to translate rhetoric into action.

Banji Oyelaran-Oyeyinka, spokesperson for AfDB, revealed the development during a presentation at the Presidential Villa on Monday. The project, in collaboration with the United Nations Industrial Development Organization (UNIDO), seeks to revitalize rural economies by leveraging the potential of commercial agriculture and food processing.

“The primary objective is to support inclusive and sustainable agro-industrial development in Nigeria,” stated Oyelaran-Oyeyinka.

The initial phase of the project will see immediate funding directed to three states: Oyo, Kaduna, and Cross River. Additional states are poised to receive support once administrative formalities are concluded.

“We have secured $540,000,000 in catalytic funding and anticipate every state to secure a partnering entity to contribute equity. While government facilitates the initiative, it will be primarily driven by the private sector,” Oyelaran-Oyeyinka emphasized.

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The initial phase encompasses seven states: Cross River, Imo, Kaduna, Kano, Kwara, Ogun, and Oyo, alongside the Federal Capital Territory (FCT). Notably, Ogun State has opted for an independent partnership, forgoing the loan.

“The next phase will encompass 27 states, prioritizing those demonstrating expedited progress. Eligibility criteria have been established, mandating states to furnish feasibility reports, environmental impact assessments, and commit to counterpart funding,” added Oyelaran-Oyeyinka.

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