Agro-industrial development will enhance Nigeria’s economic growth — Edun

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has said that the success of the Special Agro-Industrial Processing Zones (SAPZ) programme is pivotal to stabilizing and growing Nigeria’s economy.

Edun stated this at the SAPZ-1 High-Level Implementation Acceleration Dialogue and State Steering/Technical Committee Workshop organised by the Federal Ministry of Agriculture and Food Security, in collaboration with Development Financing Institutions (DFIs), including the African Development Bank (AfDB), International Fund for Agricultural Development (IFAD) and the Islamic Development Bank (IsDB).

The Minister who said food production is instrumental in reducing inflation, and interest rates, and strengthening the exchange rate, noted that food accounts for 50 per cent of the Consumer Price Index, making it a key factor in the country’s economic stability.

He, however, expressed confidence that the SAPZ programme will achieve its potential, driving Nigeria’s agro-industrial development and modernizing the economy.

“Food is 50% of the Consumer Price Index. In fact, we would say food is the core index, but it has sort of become the non-core because it has become variable, and unpredictable. But you can imagine we have inflation over 30% as we know, coming down as we know.

“You can imagine what a real, successful food production outcome would do to bring down inflation, and that will bring down interest rates, that would strengthen the exchange rate, and it would enable a basis for you, the private sector amongst us here, to invest even more, because it will become affordable to borrow.

“So it is on the basis of successful production that we can now look at exports that we can now look at the support to the trade balance, support to the foreign exchange reserves that agriculture
can and does mean, but in the initial phase that we are in now, it is all about providing food at affordable prices to Nigerians, but that’s the very short term, and we’re approaching it in a very determined manner.

“Likewise, let me pivot to the fact that with inflation coming down, with growth returning to the economy, with the reserves growing, with the exchanges stabilizing, success is being had under Mr. President’s macroeconomic, macro-physical stabilization and immediately, the pivot is to growing economy and that’s where this SAPZ cannot, must not and definitely, will not in any way disappoint, and they will achieve their potential, because that’s the basis of Nigeria’s agro-industrial effort at modernizing the economy and growing it”, he said

The SAPZ program which is supported by the African Development Bank, International Fund for Agricultural Development, and Islamic Development Bank, targets increased agricultural productivity and competitiveness.

With implementation already underway in seven states, the program is expected to create 400,000 direct jobs and 1.6 million indirect jobs.

In his address, the Minister of Agriculture and Food Security, Abubakar Kyari noted that the SAPZ programme is expected to revolutionize Nigeria’s agriculture sector, saying it is designed to increase food production, create jobs, and stimulate economic growth.

The programme, which will implement the design, build and operate (DBO) model, is projected to create 500,000 direct and indirect jobs within program operations, and 2.5 million temporary jobs along infrastructure development and related services.

Additionally, the SAPZ programme aims to improve food security by adding metric tons of food to the nation’s food basket. Staple crop yields are expected to increase by 50-100 per cent, up from current levels of 5-10 per cent. Post-harvest losses will also be reduced from 45 per cent to 20 per cent.

“As a country, we are at a pivotal moment and the decisions we take today and tomorrow will determine the success of this initiative”, he stressed.

The Director General of the Nigeria Country Department at the African Development Bank (AfDB), Dr. Abdul Kamara, called for strengthened efforts to accelerate the implementation of the Special Agro-Industrial Ecosystem Zones (SAPZ) program in Nigeria.

Dr. Kamara emphasised the transformative potential of the SAPZ program to boost Nigeria’s rural economy and advance industrialisation.

He acknowledged the commitment of the Nigerian government and various international development partners, including the AfDB and IFAD, in financing the first phase of the program, which amounts to $538 million.

He highlighted the program’s focus on climate-adapted infrastructure, agricultural productivity, enterprise development, and job creation.

“The SAPZ program has the potential to create 400,000 direct and indirect jobs, particularly for youth and women, and reduce post-harvest losses from 50% to between 10% and 20%”, he noted.

While stating that phase one of the program, launched in December 2021, covers seven Nigerian states—Cross River, Imo, Kano, Kaduna, Kwara, Ogun, and Oyo as well as the Federal Capital Territory (FCT), Kamara said about 1.5 million households are expected to benefit directly from the initiative, which targets agri-businesses, smallholder farmers, and agripreneurs.

The Country Director of International Fund for Agricultural Development (IFAD), Dede Ekoue, expressed its strong commitment to supporting the Special Agro-Industrial Processing Zones 1 (SAPZ 1).

Ekoue also recognised the active role of the Executive Governors of Kano and Ogun States, which are pivotal partners in the SAPZ initiative.

Highlighting the efforts in Kano, she said IFAD is currently working with the state government on an accelerated pilot project aimed at boosting rice and tomato farming while improving the connection between farmers and off-takers.

This effort according to her has resulted in the signing of off-take contracts, which mark significant progress for the agricultural sector.

In collaboration with the Islamic Development Bank, she said IFAD has also prioritised the procurement of agricultural inputs for farmers participating in the pilot program.

Ekoue stressed that key actions such as strengthening coordination, enhancing technical capacity, and ensuring adherence to fiduciary and human resource guidelines are crucial for the successful implementation of SAPZ 1.

“IFAD remains dedicated to supporting Ogun State, with ongoing discussions about finalizing loan agreements that will kickstart SAPZ implementation”, she said.

READ MORE FROM: NIGERIAN TRIBUNE