The African Development Bank (AfDB) has provided $520 million in support to the Nigeria agriculture sector.
The funding is joint support from the Islamic Development Bank (IDB) and the International Fund for Agricultural Development (IFAD) meant for setting up of special agricultural processing zones in seven states and the FCT, to enable private agribusinesses establish industries that process and add value to agricultural commodities.
This was disclosed on Monday by the AfDB Vice-President, Regional Development, Integration and Business Delivery Complex Mrs. Marie Akin-Olugbade in Abuja at the second interactive session and workshop on bankable business proposals/ business plans for youths and women in agriculture.
The financial support is in addition to $134 million it had provided Nigeria for emergency food production to help reduce food price inflation by boosting local production of wheat and cassava under the National Agricultural Growth Scheme.
Mrs. Akin-Olugbade said, “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.
“Here in Nigeria, together with the Islamic Development Bank and the International Fund for Agricultural Development, we provided $520 million to support the establishment of Special Agricultural Processing Zones in 7 States and the FCT, which will allow private agribusinesses to establish industries that process and add value to agricultural commodities.
“The African Development Bank Group provided $134 million to Nigeria for emergency food production to help reduce food price inflation by boosting local production of wheat and cassava under the National Agricultural Growth Scheme”.
ALSO READ: Appeal Court re-affirms Ighodalo as Edo PDP guber candidate
The AfDB said the workshop targets to stimulate Nigera’s women and youths’ active participation in agriculture, a sector it regards as the only viable alternative means of job creation for youths and women.
Mrs. Akin-Olugbade expressed concerns that Africa nations neglected agriculture, noting that it remains an unharnessed sector that will feed entire African citizens, with the opportunity for leftovers to be exported.
She stated, “Let us be clear about the stark realities: our continent is the youngest in the world. More than 636 million of our population are young people between 15 and 35 years old, a number projected to rise to 830 million by 2050. This demographic dividend presents an unprecedented opportunity for socio-economic transformation, particularly in agriculture – a fertile ground for innovation, wealth creation, and transformative impact. Yet, we face significant challenges.
“In Nigeria, 70% of the population is under 30, grappling with high levels of poverty, unemployment, and food insecurity. Nigeria’s agriculture sector contributed 25.8% to the country’s GDP in 2021 and employs 36.4% of the population.
“Across the continent, agriculture accounts for approximately 23% of Africa’s gross domestic product (GDP) and employs over 60% of the continent’s labour force.
“Studies have shown that growth in the agricultural sector is two to four times more effective in reducing poverty than growth in other sectors. Africa is home to 65% of the world’s remaining arable land enough to feed 9.5 billion people in the world”.
Mrs. Akin-Olugbade explained that agriculture is a business, and the projected agriculture market will be in the region of $1 trillion by 2030.
“These numbers alone demonstrate the central importance of agriculture as a cornerstone of Africa’s economy and a solution to the continent’s and the world’s food insecurity. The question therefore is not whether Africa can feed itself – it is how quickly we can make it happen. This is why we launched transformative initiatives like our $25 billion Technologies for African Agricultural Transformation (TAAT) programme to revolutionize African agriculture. Through this initiative, we are providing cutting-edge agricultural technologies to over 40 million farmers in our quest to make Africa food secure – by 2030”.
She pointed out that through this initiative, Ethiopia, a nation that has shown remarkable resilience in the face of historical food security challenges, achieved wheat self-sufficiency in just five years and is now a net exporter of wheat, while in Sudan, despite fragility challenges, wheat production has surged by more than 20%.
“Here in Nigeria, we delivered 6,750 tons of certified seeds of heat-tolerant wheat varieties to 118,000 farmers in the 2023/2024 planting season, which led to the planting of 120,000 Ha of wheat. In all, 277,000 Ha of wheat was planted, and Nigeria harvested over 600,000 tons of wheat grain this year, the largest in the country’s history”, she said.
According to her, the bank’s Special Agro-Industrial Processing Zones (SAPZs) initiative will bring economic infrastructure to rural areas of high agricultural potential to attract investments from private agro-industrialists and entrepreneurs, enhancing productivity, and transforming lives in rural areas.
Mrs. Akin-Olugbade said, “Africa has enough land to feed more than 9 billion more people in the world. Yet as Africa we import food! By 2015 we were spending $35 billion every year on food imports. We are racing towards $100 billion. WHY?”
Minister of Agriculture and Food Security, Senator Abubakar Kyari said the administration of President Bola Ahmed Tinubu accords priority to agriculture and food security, citing it as a key cardinal item of the government’s eight-point agenda.
The Minister noted that the government is willing and ready to support 21.1 per cent Nigerian youths willing to participate in agriculture, and commended AfDB for its continuous support to Nigeria and Africa region.
Mr. Lamin Barrow, AfDB Director General (West Africa Region) earlier in a welcome remark described Nigeria as its largest shareholder.
He said since it started operations in the country, “Cumulative financing approvals have reached $10.9 billion. Our portfolio currently stands at $ 4.9 billion supporting projects in the public and private sectors. Over the past eight years since President Adesina assumed office, the African Development Bank has prioritized the High 5–Light Up & Power Africa, Feed Africa; Industrialize Africa; Integrate Africa and Improve the quality of life for the people of Africa, as accelerators for achieving the SDGs and the targets in the African Union’s Agenda 2063. The projects and programs supported during this period have impacted over 400 million people”.
and then