By Mike ALADENIKA.
Faced with multifarious challenges ranging from the effects of Covid-19 pandemic, the Russian - Ukrainian war coupled with local security uncertainties which have reduced Nigeria's food production to an alarming rate to the extent that if something serious is not immediately done to stem the food shortage trend, Nigeria, Africa, would enter a food crisis situation.
According to the special assistant to the President, Africa Development Bank, on industrialisation, Prof. Oyebanji Oyelaran the launching of the AfDB's Special Agroindustrial Processing Zone
on the 24th, 25th of October 2022 is an idea that has been in the making for so many years.
The Program is designed to support inclusive and sustainable agro-industrial development in Nigeria. "It is a model that has been used successfully in many countries. But ours is unique for two reasons. It is devoted to the processing of agricultural commodities in which we have a high degree of comparative advantages as 65% of global arable land is in Africa out of which Nigeria has 35Million hectares, most of which remains uncultivated.
" It then makes a lot of sense to us to try to optimise this natural resources that we have, so we started in April 2019 to begin to plan this at the request of President Mohammadu Buhari that we should build Special Agroundustrial Zones in the country".
"Right now we have right zones made up of seven states and the FCT. These zones are to specially congregate agro-processor, agro-dealers, farmers, factory owners withing a geographical area in other to maximize certain infrastructures that are not readily available"
The Global Hunger Index (2022) ranks Nigeria 103rd among 121 countries facing hunger crises in the world, this emphasising the need for government to “decisively tackle insecurity challenges that prevent farmers from going to the farms” because “Food security needs national security”.
" The result is that locally produced food is not competitive and the country spends so much foreign exchange to import food while the food producers of our rural areas are sentenced to a miserable life of indigence. If we get the equation right, as the AfDB-led initiative is intended to do, the private sector will be encouraged to invest in agro-industry thereby helping to reduce the high unemployment rate which currently stands at 33.3 percent or 22.2 million people."
"The Special Agroindustrial Processing Zone program is designed to transform rural areas to industrial centres with all modern infrastructure through the instrumentality of agriculture as a sustainable business as against subsistence farming."
According to Prof Oyelaran Oyebanji
"The Phase 1 of the Special Agro-Industrial Processing Zones (SAPZs) Program will be implemented in seven states (Cross River, Imo, Kaduna, Kano, Kwara, Ogun, Oyo) and the Federal Capital Territory (FCT). Many other states in the country are already angling to be included in the second phase which is still in gestation. It is hoped that all the states in the federation will be covered eventually."
"When the first phase, which will be implemented over five years (2022–2026) is completed, Nigeria would have developed infrastructure for eight Agro-Industrial Processing Hubs (AIHs), fifteen Agricultural Transformation Centres (ATCs), 2,300 hectares of irrigated lands and farm-to-market access roads. The benefitting states in this first phase will enjoy a supply of certified agricultural inputs and extension services; skills development for farmers and Micro, Small and Medium Scale Enterprises (MSMEs), an updated agro-industrial zone policy and establishment of a special regulatory regime."
"The SAPZ Program Phase I is estimated to cost USD 538.05 million. The African Development Bank will provide USD 160 million (29.7% of total cost) together with an Africa Growing Together Fund (AGTF) loan of USD 50 million (9.3%); The Islamic Development Bank (IsDB) is contributing USD 150 million (27.9%) and the International Fund for Agricultural Development (IFAD) will provide parallel co-financing of USD 100 million (18.6%). Additional resources (USD 60 million, 11.1%) will be mobilised through the Green Climate Fund (GCF) by IFAD from the IGREENFIN initiative. The Federal and State Governments will contribute USD 18.05 million (3.4%)."
SPARKNEWSNAIJA's detailed checks on Africa Development Bank commitment to the programme reveals that “The Special Agro-industrial Processing Zones are new economic zones, located in rural areas, to be fully supported by infrastructure (power, water, roads, digital infrastructure, and logistics) that will allow food and agribusiness companies to locate within such zones.
"This will put them close to farmers in production catchment areas, provide market off-takes for farmers, support processing and value addition, reduce food losses, and allow the emergence of highly competitive food and agricultural value chains.”
When fully consumated, the SAPZ Program will provide among other things: Rural infrastructure development, Improved access to agricultural markets, Increased farm productivity, Modern agricultural technology, Climate-smart agricultural production and processing practices,
Increased value addition and agro-processing, Increased skills acquisition, Job creation for all actors along the value chain, small, medium or large.
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