News in brief:
– AfDB’s new Country Strategy Paper focuses on food security, rural development, and infrastructure expansion in Nigeria.
– The Bank is investing in smallholder farmers, youth entrepreneurship, and agro-industrial zones to drive growth.
The African Development Bank Group (AfDB) has launched a new Country Strategy Paper (CSP) aimed at strengthening Nigeria’s agriculture sector and accelerating infrastructure growth. The initiative is part of the Bank’s ongoing efforts to drive economic transformation in the country.
The announcement was made by Dr Abdul Kamara, AfDB’s Director General for Nigeria, during a high-level meeting with Finance Minister Wale Edun. The strategy includes major projects designed to enhance food security, rural development, and industrial growth.
A key component of the new strategy is the second phase of the National Agricultural Growth Scheme (NAGS), which aims to bolster food production, improve rural livelihoods, and enhance value chains across Nigeria.
The Bank is also making significant progress in developing Special Agro-Industrial Processing Zones (SAPZs), which aim to boost agro-processing and attract private-sector investments. Infrastructure development in Sokoto is advancing, while new expansions are planned for Cross River and Kaduna States.
Support for youth and smallholder farmers
AfDB is further reinforcing its commitment to youth entrepreneurship through the Youth Enterprise Investment Fund, which aims to create jobs and promote economic inclusion among young Nigerians.
Additionally, the Bank is expanding access to finance for smallholder farmers and agribusinesses. Last week, AfDB President Dr Adesina unveiled a $500 million financing facility expected to unlock $10 billion in funding for farmers across Africa. The initiative, launched at the High-Level Conference on Scaling Finance for Smallholder Farmers in Nairobi, seeks to bridge Africa’s $75 billion annual financing gap in the agricultural sector.
Despite these efforts, African farmers continue to struggle with limited access to credit. Only 6% of smallholder farmers on the continent can secure loans, and fewer than 20% use improved seeds due to financial constraints. Many banks still perceive agriculture as a high-risk sector, with lending to farmers accounting for less than 5% of total loan portfolios in most African nations.
Adesina emphasised the need for global financial institutions to step up support for Africa’s agricultural sector. Under his leadership, the Bank has committed $10 billion, with 77 projects worth $3.9 billion already approved across 32 countries and an additional $1.72 billion in approvals planned for this year.
Minister Wale Edun commended AfDB’s contributions to Nigeria’s economic development, particularly in agriculture, infrastructure, and youth empowerment. He reaffirmed the government’s commitment to working closely with the Bank to achieve sustainable growth.
As AfDB intensifies its investments in food security, rural development, and infrastructure, Nigeria stands to benefit from improved agricultural productivity, job creation, and enhanced economic resilience.
