AfDB to Release $2.2bn Nigerian Agro-Industrial Fund Starting 2025

The African Development Bank (AfDB) is set to launch a $2.2 billion agro-industrial fund for Nigeria in 2025, aimed at boosting agricultural development and industrialization.

The African Development Bank (AfDB) is about to begin disbursing a $2.2 billion fund for the development of Special Agro-Industrial Process Zones in Nigeria (SAPZ).

Abdul Kamara, the Director General of AfDB Nigeria Office, announced this during Channels Television’s 2024 End-of-Year Review themed ‘Focus on the Agriculture Sector, Food Security, Research and AfDB Investments’.

He stated, “Starting specifically from next year (2025), we will begin to see contracts being signed and the initiation of mobilization and construction on-site in some states. Naturally, not all states will commence simultaneously.”

He stated that the funds would be allocated for developing agro-industrial hubs dedicated to processing, establishing aggregation centers, and supporting agricultural transformation programs.

The developmental economist noted that although the Special Agro-Industrial Process Zones were approved by the AfDB Board in 2021, the project is gaining momentum after initial startup delays caused by several factors.

“When you approve a program, especially on that scale, it must be signed with the Federal Government. Additionally, agreements are required with co-financiers. The Bank involved IFAD (International Fund for Agricultural Development) and the Islamic Development Bank as co-financiers,” he stated.

Kamara mentioned that during a meeting with several state governors months ago, the Bank agreed on specific actions to speed up SAPZ. “In all seven states—FCT, Cross River, Ogun, Oyo, Kaduna, Kano and Kwara—we are currently engaged in discussions and have started publishing bidding documents to streamline the process. The initiative is gaining momentum now because complex projects typically take time.”

This is precisely why, at the African Investment Forum that concluded earlier this month, various financiers pledged a total of $2.2 billion.

So, the SAPZ is set to take place and it’s expected to be just as successful as our other initiatives.

“The Bank is contributing approximately one billion dollars. However, when you include contributions from others—since we act as a convener and attract additional partners—the total amount will be higher,” he stated.