The National Economic Council, during its 137th meeting presided over by Vice-President Kashim Shettima at the Aso Rock Villa in Abuja, unveiled plans to direct a minimum of $1.52 billion in donor funds toward establishing 36 specialized agro-industrial processing zones across the country.
This initiative aims to generate over 18.1 million jobs, including opportunities for 100,000 farmers nationwide.
The initial phase, already underway in Kano, Kaduna, Kwara, Ogun, Oyo, Imo, Cross River states, as well as the Federal Capital Territory, will require an investment of over $520 million and is projected to conclude by 2028.
Twenty-six states have demonstrated interest in participating in Phase II of the program, where a substantial $1 billion in funding from the African Development Bank and other partners will be allocated.
It was also reported that the documentation for the second phase is slated to commence in early 2024.
Minister of Agriculture and Food Security, Abubakar Kyari, disclosed these developments to State House Correspondents following the conclusion of the meeting.
Kyari mentioned that the funds, initially pledged by the African Development Bank, Islamic Development Bank, and the International Fund for Agricultural Development, amounting to $1 billion, were designated to establish SAPZs in 24 states.
These commitments were made during the Norman Borlaug International Dialogue, World Food Prize 202, held in Des Moines, Iowa, USA, in late October.
Additionally, separate from the aforementioned commitment, development partners had allocated an initial $520 million for the identical purpose.
“The Vice President who attended the World Food Prize in Des Moines, Iowa, met with the president of the African Development Bank. Dr Adesina has already pledged $1bn to the second phase,” said the minister.
He highlighted that his ministry presented a collaborative program to the council, detailing partnerships with the African Development Bank, the International Fund for Agricultural Development, the Islamic Development Bank, several state governments, and private investors.
He explained, “The seven states are Kano, Kaduna, Kwara, Ogun, Oyo, Imo, and Cross River, and like I said, with the FCT being the eighth partner in this programme.
“The quick wins here are that even in the stage of construction, you will have the opportunity for over 3,000 jobs.
“And at the end of the construction, opportunities will be for almost 500,000 jobs on each zone that is for each state and then also to support about 100,000 farmers.”
The minister described the SAPZs as a comprehensive initiative and platform aimed at enticing private sector investments, enhancing Nigeria’s agro-processing capabilities, and unlocking opportunities for improved food security and job creation.
He revealed that since its inception in 2022, the program actively engaged seven states along with the Federal Capital Territory. These zones are intended not only for production but also as centers for gathering and processing agricultural produce.
With an earmarked budget of around $530 million, the primary focus of the first phase is to establish agricultural production clusters and significantly reduce post-harvest losses, an aspect emphasized by the former lawmaker.
“For instance, Kano has keyed in to do a lot of tomatoes in this zone. And we know that tomato losses run to almost 50 to 60 per cent. It is unacceptable in today’s agricultural sector,” the minister pointed out.
On Phase II, Kyari said, “We have already received expressions of interest from about 26 states so far. The second phase is supposed to start next year. This first phase will last for five years. And the documentation for Phase Two will begin by next year.
“There are only three states (Abia, Adamawa, and Yobe) that have not expressed interest. But as we were leaving here, one (Abia State) had already signified and are working on sending the expression of interest.”
