African Development Bank (AfDB) has commenced the first phase of the disbursement of $540 million Agro-Industrial Funds for the development of Special Agro-Industrial Processing Zones (SAPZs) in the country.
This was disclosed by the Senior Special Adviser on Industrialization to the AfDB President, Prof. Banji Oyelaran Oyeyinka on Monday when he received a delegation of the bank and that of the United Nations Industrial Development Organization (UNIDO) who presented their separate reports on the status of projects being executed in Nigeria to Vice President Kashim Shettima at the Presidential Villa.
The fund Is part of the Nigerian government’s effort to ensure food security in the country.
According to Oyelaran-Oyeyinka, three states are to benefit from phase one of the development of processing zones, including Oyo, Kaduna and Cross River, while others are to get theirs as soon as they are through with documentation.
Making AfDB’s presentation to the Vice President, Oyelaran-Oyeyinka said:
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“The Special Agro-Industrial Processing Zones (SAPZ) is an initiative of the African Development Bank that is aimed at turning the rural landscape into economic zones of prosperity and harnessing the power of commercial agriculture and food.
“The primary objective is to support inclusive and sustainable agro-industrial development in Nigeria. The phase one of the project is at the point of disbursement. Kaduna, Oyo and Cross River States are all in the process of receiving disbursements and we hope that the other states can speed up with their documentation so that we can fast-track these states.
“We raised $540,000,000 in catalytic funding and we expect every state to find a partner that will bring equity and join up with them. It is a government-enabled project but private-sector driven”
In addition, the SSA to the President of the AfDB highlighted that the inaugural phase of SAPZ implementation spans seven states Cross River, Imo, Kaduna, Kano, Kwara, Ogun, and Oyo alongside the Federal Capital Territory (FCT).
“Ogun state found a partner for the project and decided not to take the loan. We are basically going to distribute the loan to the other states. The next thing is preparation for phase two with 27 states. The demand is enormous but we have to prioritise those who move fast.
“We have set up eligibility criteria for the states and to rank them. We expect them to have a feasibility report, environmental impact study and a commitment to counterpart funding,” Oyelaran-Oyeyinka added.
