The Federal Government of Nigeria is set to commence 36 special Agro-industrial Processing zones across the nation, with $ 1.5 billion in funds from international organizations. The government envisioned the scheme would create at least 18.1 million Jobs for Nigerians.
The Minister of Agriculture and Food Security, Abubakar Kyari, revealed this to State House Correspondents after the conclusion of the 137th National Economic Council (NEC) meeting presided over by Vice-President Kashim Shettima at the Aso Rock Villa, Abuja, on Thursday. He noted that the first phase, which now runs in Kano, Kaduna, Kwara, Ogun, Oyo, Imo, and Cross River states, as well as the Federal Capital Territory, will gulp over $520m and is set to conclude by 2028.
At least twenty-six states have already expressed interest in joining Phase II of the program, where the $1bn funding from the AfDB and other partners will be channeled. The states will begin documentation for the second phase in early 2024. Revealing the source of funding for the project, Kyari said the funds were earlier pledges by the African Development Bank, Islamic Development Bank, and the International Fund for Agricultural Development, who voted $1bn to deliver SAPZs in 24 states at the Norman Borlaug International Dialogue, World Food Prize 202, in Des Moines, Iowa, USA, in late October.
He noted that this was aside an initial $520m voted by the development partners for the same purpose.
He also revealed that “The Vice President who attended the World Food Prize in Des Moines, Iowa, met with the president of the African Development Bank. Dr Adesina has already pledged $1bn to the second phase,” said the minister. Consequently, his ministry presented to the council outlining the collaborative program with the African Development Bank, the International Fund for Agricultural Development, the Islamic Development Bank, various state governments, and private investors.
He stressed that “The seven states are Kano, Kaduna, Kwara, Ogun, Oyo, Imo, and Cross River, and like I said, with the FCT being the eighth partner in this programme. “The quick wins here are that even in the stage of construction, you will have the opportunity for over 3,000 jobs. And at the end of the construction, opportunities will be for almost 500,000 jobs on each zone that is for each state and then also to support about 100,000 farmers.”
The minister described the SAPZs as a cross-cutting initiative and platform to attract private sector investment, add value to Nigeria’s agro-processing, and unlock improved food security and job creation opportunities. The program, which he said will commence in 2022, saw the active participation of seven states and the Federal Capital Territory, even as the zones would not only serve as production sites “but also hubs for aggregation and processing of agricultural produce.”
The former lawmaker noted that it also earmarked approximately $530m for the first phase, aiming to establish clusters of agricultural production and significantly reduce post-harvest losses. “For instance, Kano has keyed in to do a lot of tomatoes in this zone. And we know that tomato losses run to almost 50 to 60 percent. It is unacceptable in today’s agricultural sector,” the minister pointed out.
On Phase II, Kyari said, “We have already received expressions of interest from about 26 states. The second phase is supposed to start next year. This first phase will last for five years. And the documentation for Phase Two will begin by next year. The council also acknowledged the leading role of Ogun State in developing these zones. Kyari said despite Ogun’s delay in signing the Subsidiary Loan Agreement, a commitment was recently secured from the state government to sign it promptly.
