AfDB others Join forces to inject $520m into Nigeria’s agriculture sector
The African Development Bank (AfDB) has partnered with the Islamic Development Bank (IDB) and the International Fund for Agricultural Development (IFAD) to provide a substantial financial boost of $520 million to Nigeria’s agriculture sector. This joint support aims to establish special agricultural processing zones in seven states and the Federal Capital Territory (FCT), allowing private agribusinesses to set up industries that will process and add value to agricultural commodities.
The announcement was made by Mrs. Marie Akin-Olugbade, the Vice-President of the AfDB’s Regional Development, Integration, and Business Delivery Complex, during the second interactive session and workshop on bankable business proposals for youths and women in agriculture held in Abuja on Monday.
The $520 million funding is in addition to the $134 million that the AfDB had previously provided to Nigeria for emergency food production under the National Agricultural Growth Scheme. This support aimed to reduce food price inflation by boosting local production of wheat and cassava.
Mrs. Akin-Olugbade highlighted the significance of these initiatives, stating, “With $4.5 billion mobilized for 28 zones across 11 countries, we are not just growing crops – we are cultivating entire value chains, creating jobs, and stimulating rural economies.” She emphasized that the establishment of Special Agricultural Processing Zones will enable Nigeria to unlock its agricultural potential, attract investments from private agro-industrialists, and transform the lives of rural communities.
The workshop organized by the AfDB specifically targeted women and youths, recognizing their crucial role in the agriculture sector. The AfDB views agriculture as the most viable alternative for job creation and aims to stimulate active participation from these demographics.
Africa, with its young population, presents a significant opportunity for socio-economic transformation through agriculture. Mrs. Akin-Olugbade highlighted that more than 636 million Africans are between the ages of 15 and 35, a number projected to rise to 830 million by 2050. She emphasized the importance of agriculture in addressing high levels of poverty, unemployment, and food insecurity, particularly in Nigeria, where 70% of the population is under 30.
The agriculture sector in Nigeria contributed 25.8% to the country’s GDP in 2021 and employed 36.4% of the population. Across the continent, agriculture accounts for approximately 23% of Africa’s GDP and employs over 60% of the labor force. The AfDB believes that growth in the agricultural sector is essential for poverty reduction and food security, as studies have shown its effectiveness in these areas.
Furthermore, Mrs. Akin-Olugbade highlighted Africa’s vast agricultural potential, stating, “Africa is home to 65% of the world’s remaining arable land, enough to feed 9.5 billion people in the world.” She stressed the need for Africa to become self-sufficient in food production and reduce its dependence on food imports, which currently amount to billions of dollars each year.
The AfDB’s initiatives, such as the Technologies for African Agricultural Transformation (TAAT) program, aim to revolutionize African agriculture and make the continent food secure by 2030. Through this program, cutting-edge agricultural technologies are being provided to over 40 million farmers. Success stories have already been witnessed in Ethiopia, where wheat self-sufficiency was achieved in just five years, and Sudan, where wheat production has increased significantly.
The AfDB’s Special Agro-Industrial Processing Zones (SAPZs) initiative will bring economic infrastructure to rural areas with high agricultural potential, attracting investments and transforming lives. Mrs. Akin-Olugbade stressed that Africa has the land and resources to feed billions of people, and it is crucial to seize this opportunity.
The Minister of Agriculture and Food Security, Senator Abubakar Kyari, acknowledged the priority given to agriculture and food security by President Bola Ahmed Tinubu’s administration. He stated that the government is committed to supporting Nigerian youths who are willing to participate in agriculture, and he commended the AfDB for its continuous support to Nigeria and the African region.
Mr. Lamin Barrow, the AfDB Director General for the West Africa Region, highlighted Nigeria’s importance as the bank’s largest shareholder. He emphasized that the AfDB has been actively supporting projects in Nigeria, with cumulative financing approvals reaching $10.9 billion. The bank’s High 5 strategic priorities, including initiatives to improve quality of life, have positively impacted over 400 million people in Africa.
The financial injection of $520 million into Nigeria’s agriculture sector through the partnership between the AfDB, IDB, and IFAD is expected to drive growth, create jobs, and enhance the country’s food security. This collaborative effort underscores the commitment of these organizations to support Nigeria’s agricultural
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