AfDB, Arab Bank Raise $300m for Nigeria’s Special Agro-Industrial Zones Phase 2

The African Development Bank (AfDB) and the Arab Bank for Economic Development in Africa (BADEA) have collaborated to source about $300 million facility for the co-financing of the phase 2 of the Special Agro-Industrial Zones (SAPZ) in Nigeria.

This was disclosed by Prof. Banji Oyelaran-Oyeyinka, the Senior Special Adviser on Industrialisation to the President of the AfDB, Akinwunmi Adesina, on the second day of the SAPZ-1 High-level Implementation Acceleration Dialogue and States Steering/ Technical Committee Workshop in Abuja.

Oyelaran-Oyeyinka, who handles the bank’s industrialisation agenda and also the special industrial processing zones across Africa, however lamented that despite all the efforts to ensure prompt disbursement of the phase 1 of the programme, some of the states were still largely not responding.

A former United Nations (UN) top employee, he stated that as the only triple-rated bank in Africa and most transparent bank in the world, the global convening power of the continental bank remains top-notch.

“So, in the first phase of the Special Agro-Industrial Processing Zone, the bank’s contribution was about $220 million. We raised $540 million. The rest came from Islamic Development Bank (IsDB) IFAD, and there’s also an organisation called Africa Go Together Fund (AGTF). So, as you can see, we were able to raise considerable financing.

“And as we speak here now, for the phase two, we have also attracted additional co-financing of $300 million from BADEA, that is the Arab Bank for International Development. So, the goodwill is there, and the co-financing support is there. But people will not bring you financing when you have not disbursed the one they gave to you in the first place,” Oyelaran-Oyeyinka said.

Taking questions from journalists, the development economist stressed that this issue remains a source of frustration for the bank.

“ In other words, we are not able to disburse because people are not meeting the conditions in terms of speed of responding to the critical conditions. We haven’t been responding enough because sometimes there are human barriers. In fact, what I find the most difficult is the human interventions, sometimes negative human interventions in the course of complex projects.

“I cited to you yesterday how just one individual held us up for almost nine months for no reason at all. This ‘carry me along syndrome’, somebody’s ego is bruised because he didn’t hear on time.

“We know that complex projects will have its own enemies. They have enemies because it’s not meeting the objective or sub-objective of somebody else. Some people’s personal objectives tend to override national objectives, so we understand that,” he lamented.

Despite all the challenges, he stressed that if 80 per cent success is achieved, it would be a plus for the AfDB, disclosing that out of the eight states that are beneficiaries, at least three or four of them are playing by the rules or trying hard to play by the rules.

“If all we get is four out of five, that’s 80 per cent. For me, that would be success at the end of the year. We also believe because we are resilient. If it hasn’t been resilience, we would have given up a long time ago,” he added.

He pointed out that a number of the states were complaining about the complexity of the rules, explaining that the word ‘hard’ was relative.

Oyelaran-Oyeyinka urged such states to hire the services of consultants so as to be able to navigate the processes leading to the disbursement of monies to them, but insisted that the AfDB will not bend the rules for anybody.

In their respective remarks, the representatives of the governors agreed that there was the need to fast-track the process of achieving the SAPZ goals and objectives.

Commissioner for Agriculture, Kaduna, Murtala Muhammed Dabo, stated that the programme will help drive industrialisation and food sufficiency as well as add value to whatever Nigeria produces.

“For instance, Kaduna as a state, we are the largest producers of ginger, mostly for export. But we export the raw ginger, dry or fresh. When we have these hubs, these industries will add value,” he said.

Also speaking, Imo State Commissioner for Agriculture, Cosmos Maduba, stated that some states had been struggling with some issues that had more or less delayed the full take-off of the programme.

“So the managers at the national level called for a meeting where stakeholders will gather and review the issues that have caused this delay in actual take-off of the project so we can establish them and get them mitigated against,” he stressed.

Others who were present at the event included: Johnson Ebokpo, Commissioner for Agric in Cross River; Dr Debo Akande, Special Adviser on Agriculture Business in Oyo State; Sadi Ibrahim, Permanent Secretary in Kano as well as Dr Kabiru Yusuf, National Project Coordinator of SAPZ.

Meanwhile, the AfDB is to partner Nigeria on value addition to the nation’s raw materials from the current 25 per cent to 60 per cent by 2028.

The Minister of Science and Technology, Uche Nnaji made the disclosure yesterday during a presentation and dialogue session at the headquarters of the Raw Materials Research and Development Council (RMRDC), in Abuja.

Nnaji said with the 10-year development roadmap supported by the AfDB, Nigeria will achieve 60 per cent value addition to her raw materials before they leave the shores of the country.

“As you may know, the RMRDC with the support of the AfDB is on the verge of developing a comprehensive 10-year roadmap to achieve a transformational leap in Nigeria’s raw material value addition, from the current 25 per cent to a target of at least 60 per cent.

“This ambitious goal is not just a number; it represents a bold vision for Nigeria’s future—where our raw materials are no longer exported in their crude form but processed and enriched to maximise their value before leaving our shores,” he said.

Speaking on the importance of increasing the value addition of the nation’s raw materials before export, he said: “The importance of improving the value of our raw materials before export cannot be overstated. By doing so, we stand to create more jobs, stimulate the growth of domestic manufacturing, and ultimately strengthen the value of the naira.

“The greater utilisation of local raw materials will reduce our dependence on imports and position Nigeria as a critical player in the global raw materials value chain.”

He added that the country needs all necessary support and collaboration to achieve this goal.

However, he noted, that the milestones cannot be attained alone, adding that there was the need for collective wisdom, expertise, and resources from valued partners.

“The RMRDC’s 10-year roadmap outlines key strategic interventions, and this event serves as an invitation to each of you to collaborate with us on critical fronts, including building critical capacity in circularity and repurposing.

“We must ensure that raw materials are utilised efficiently, reducing waste and embracing circular economy principles that can extend the lifecycle of materials.

“By working together, we can set a global example of sustainability. Developing relevant databases and management information systems: One of the cornerstones of effective raw materials management is access to real-time, accurate data,” he emphasised

The Manager, Natural Resources Management and Investment Centre, AfDB, Fred Kabanda, pledged the bank’s support for the RMRDC’s programme.

“We fully recognise the strategic importance of effective raw material beneficiation in fostering industrialisation, economic diversification, and sustainable development in Africa and Nigeria specifically due to the enormous natural capital,” he said.

The Country Director of Development Alternatives Inc, Dr. Joe Abah, in his keynote speech stated that the management and conversion of Nigeria’s raw materials into finished products was crucial if Nigeria was to unlock its vast potential and secure sustainable prosperity for its citizens.

The Director General of RMRDC, Prof. Nnanyelugo Ike-Muonso, in his presentation, underscored the council’s plan to achieve the 10-year plan and 60 per cent value addition through, data, technology and research.

Emmanuel Addeh and Oghenevwede Ohwovoriole

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