-SG (1).gif)
NIGERIA is to be offered a loan of $210m by the African Development Bank (AfDB) to help fund the creation of special agro-industrial processing zones across the country as part of an economic diversification plan.
Very vulnerable to the vagaries of the global crude oil market, Nigeria is a mono-economy, with about 90% of federal government revenue coming from crude oil receipts. Conscious of the fact that it needs to do something about it, the government is looking to diversify the economy, with particular emphasis on agriculture.
According to the AfDB president Dr Akinwunmi Adesina, the loan, approved by the bank’s board of directors, will help to unlock Nigeria’s agricultural sector and impact the lives of millions of people in Africa’s most populous country. He said the loan would also assist in promoting industrialisation across the country through the strategic development of crops and livestock
According to Dr Adesina, the credit facility would co-finance Phase One of the Nigeria Special Agro-Industrial Processing Zone Programme. He noted that this phase of the project would target seven Nigerian states and the Federal Capital Territory.
Furthermore, Dr Adesina added that the project would support Nigeria’s efforts to raise agricultural productivity, promote investment, create wealth and jobs and transform rural areas into corridors of economic prosperity. In addition, he noted that the first phase would be implemented with co-financing from other partners in $538.05m cash.
Dr Adesina said: “AfDB financing for this programme represents one of the bank’s most ambitious operations, in terms of scale and scope, to date. It is made up of an African Development Bank loan of $160m and an Africa Growing Together Fund loan of $50m, with phase one of the project targeting seven Nigerian states and the country’s Federal Capital Territory.
“This first phase of the programme is not government-driven as it is government-enabled and private sector-led. That is the critical way in which you have structural transformation of agriculture.
“It is impressive to see a strong commitment from the Nigerian government. A very strong commitment from the Nigerian minister of finance and from all of the state governments because they have to give the land, they make sure that all the regulations and incentives are provided.”
