The African Development Bank (AfDB) has approved $ 210 million in loans for Nigeria to impact the lives of millions of people in Africa’s most populous country.
This was revealed by the bank via a statement released on Tuesday.
According to the lender, the loan will co-finance phase 1 of Nigeria’s special agro-industrial processing zone program.
What the AfDB says about the loan
He stated: “A $ 210 million loan approved by the African Development Bank’s board of directors on Monday could impact the lives of millions of people in Africa’s most populous country.
“The loan will co-finance phase 1 of Nigeria’s special agro-industrial processing zone program. The program will help unlock the potential of Nigeria’s agricultural sector. It will promote industrialization through the development of strategic crops and breeding.
“The African Development Bank’s funding for this program represents one of the Bank’s most ambitious operations in terms of scale and scope to date. It consists of a loan from the African Development Bank of $ 160 million and a loan from the Africa Growing Together Fund of $ 50 million. Phase 1 of the project will target seven Nigerian states and the country’s Federal Capital Territory.
“The project will support Nigeria’s efforts to increase agricultural productivity, promote investment, create wealth and jobs, and transform rural areas into corridors of economic prosperity. Its first phase will be implemented with cofinancing from other partners to the tune of $ 538.05 million.
“We have several million hectares of arable land available and we have embarked on the creation of special agricultural processing zones across the country,”
What you should know
The special agro-industrial processing zones program should provide economic infrastructure to rural areas with strong agricultural potential. These zones will attract investments from agro-industrialists and private entrepreneurs, contribute to the economic and social development of Nigeria and stem the rural exodus.
The project areas represent 19% of the total landmass of Nigeria and will benefit 50.4 million people. The states where the first phase of the program will be implemented were selected on the basis of a preparation criterion as well as the need to ensure a geographical balance between the six geopolitical zones of Nigeria.
In addition to funding from the African Development Bank for phase 1 of the project in Nigeria, the Islamic Development Bank and the International Fund for Agricultural Development will provide parallel co-financing. The Federal and State Governments of Nigeria will contribute both in cash and in kind.