Nigeria's North West Governors Seek AfDB's Backing for Farming Boom

Nigeria's north west governors are seeking support from the African Development Bank (AfDB) to unlock their region's agriculture potential and create jobs for millions of people.

The governors, who represent seven states that account for about 28% of Nigeria's population and 23% of its land area, met with AfDB, President Akinwumi Adesina, and other senior officials in Abidjan, Côte d'Ivoire, on 17^th November. 

They discussed how to partner with the bank to implement the Special Agro-industrial Processing Zones initiative, which aims to attract private investors to set up processing plants near sources of raw materials. 

Nigeria's agriculture: a sector ripe for growth

Nigeria's economy relies heavily on agriculture, which accounts for a quarter of its GDP and employs 35% of its workforce. The sector also provides food security for the country, which has the largest population and economy in Africa.

But Nigeria's farming potential is far from being fully tapped. Low yields, poor infrastructure, climate change and insecurity are among the hurdles that hamper its development.

The government and the private sector are trying to overcome these challenges by implementing various policies and programmes, such as the Special Agro-industrial Processing Zones (SAPZs).

Launched in October last year, the SAPZs programme aims to attract private investors to set up factories near farms. The idea is to cut post-harvest losses, add value to crops and boost incomes for rural dwellers. The African Development Bank (AfDB), along with partners, is backing the initiative with $1 billion in financing to support up to 25 of Nigeria’s 36 states.

During the meeting with the group of seven governors from Nigeria’s north west region, the President of AfDB, Akinwunmi Adesina, urged the governors to collaboratively and promptly select agricultural hubs to host the Special Agro-industrial Processing Zones (SAPZs).

“These zones will benefit local farmers and create jobs throughout the value chains,” Mr. Adesina said in an official statement.

“They will provide unprecedented opportunities to transform commodities into high-value products, reduce waste and post-harvest losses, boost incomes, increase profits, and plough money back into your rural economies.”

AfDB’s solar plan for curbing food inflation

Nigeria’s inflation rate hit a record 27.3% in October, as food and energy prices soared. The African Development Bank (AfDB) plans to help by providing reliable power to the country, said its president, Akinwumi Adesina. The bank’s $ 20 billion Desert-to-Power initiative aims to deliver 10,000MW of solar energy to some 250m people across the Sahel.

Food prices, which account for 65% of the consumer price index, have risen by 33% in Nigeria. Mr Adesina said that supplying affordable renewable energy to the north-west, a region crucial for Nigeria’s development, would boost the bank’s planned Special Agro-Industrial Processing Zones and help to tame inflation.

Maximizing regional advantage for growth and development

Governor Dikko Radda of Katsina State announced that the North West governors have decided to adopt a coordinated approach in collaborating with the Bank to implement agriculture and power projects that will drive the zone’s development and improve livelihoods. “We have commonalities in people, approaches, culture, tradition, topography, rainfall and climate,” he said.

The governors expressed their interest and commitment to the programme and highlighted the opportunities and challenges in their respective states and regions, such as insecurity, climate change, land availability, irrigation, power supply, and value addition. They also expressed gratitude to the bank for its support to Nigeria’s development.

The governors visit formed part of AfDB's efforts to deepen its engagement with Nigeria, which is both its largest shareholder and biggest client. The bank has invested more than $10 billion in Nigeria since it started operations in the country in 1971, and currently has an active portfolio comprising 48 operations valued at $4.4 billion.