AfDB To Begin Disbursement Of $540 Million SAPZs Fund

Preparations are complete for the African Development Bank (AfDB) to initiate the disbursement of $540 million to the initial phase of states in Nigeria for the development of Special Agro-Industrial Processing Zones (SAPZs).

Meanwhile, Vice President Kashim Shettima has urged for prompt action, emphasising that the government and its development partners must translate promises into tangible outcomes.

In efforts to enhance food security within Nigeria, the Nigerian government and the bank are collaborating to advance the development of processing zones.

In the initial phase, three states—Oyo, Kaduna, and Cross River—are slated to benefit, while others will follow suit once their documentation processes are completed.

The Senior Special Adviser on Industrialization to the AfDB President, Prof. Banji Oyelaran-Oyeyinka, revealed this during a meeting on Monday.

The meeting, held at the Presidential Villa, involved delegations from the AfDB and the United Nations Industrial Development Organization (UNIDO) presenting separate reports to Vice President Kashim Shettima on the progress of projects underway in Nigeria.

According to a statement by the spokesman of the vice president, Stanley Nkwocha, making AfDB’s presentation to the Vice President, Oyelaran-Oyeyinka said, “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 for the other states, they 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.”

The Senior Special Adviser to the AfDB President elaborated that the initial phase of Special Agro-Industrial Processing Zones (SAPZs) is underway in seven states: Cross River, Imo, Kaduna, Kano, Kwara, Ogun, and Oyo, in addition to 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.