The African Development Bank Group (AfDB) has launched a new Country Strategy Paper for Nigeria to boost agriculture and enhance economic growth.
This announcement was made by Abdul Kamara, director general of the AfDB’s Nigeria country department, during a meeting with Wale Edun, the finance minister, to discuss further collaboration in key sectors.
The launch of the new strategy paper reaffirms AfDB’s commitment to transformative projects in Nigeria.”
These include the second phase of the National Agricultural Growth Scheme (NAGS), which focuses on food security and rural development.
He also highlighted infrastructure progress in the Special Agro-Industrial Processing Zones (SAPZ), with advancements in Sokoto and planned expansions in Cross River and Kaduna States.
He emphasised the AfDB’s support for youth entrepreneurship through initiatives like the Youth Enterprise Investment Fund, which is designed to create jobs and drive economic inclusion.
Edun also praised the Bank’s role as a pivotal partner in Nigeria’s revitalisation, particularly in agriculture, infrastructure development, and youth empowerment.
Similarly, last week, Akinwumi Adesina, president of AfDB, unveiled plans for a $500 million facility to unlock $10 billion in financing for smallholder farmers and agribusinesses across Africa.
Speaking at the high-level conference on Scaling Finance for Smallholder Farmers in Nairobi, Adesina outlined the Bank’s innovative approach, which includes trade credit guarantees, blended finance mechanisms, and first-loss coverage to close the financing gap for farmers.
According to him, these instruments aim to reduce the high transaction costs of supporting enterprises with the backing of technical assistance.
The conference, organised in partnership with the Pan African Farmers’ Organisation (PAFO), addressed Africa’s critical $75 billion annual financing gap for farmers and agribusinesses.
President William Ruto recently awarded Kenya’s highest national honour to Adesina, who has called for global action to unlock Africa’s agricultural potential.
The Development Bank has committed $10 billion to this effort and approved 77 projects worth $3.9 billion in 32 countries. They plan to authorise an additional $1.72 billion this year.
Despite this progress, significant challenges remain. Access to credit and improved seeds remains limited for African smallholder farmers, with only 6 and 20 per cent currently having access. Due to climate variability and insufficient collateral, financial institutions often view these farmers as high-risk borrowers.
Source: Business Day
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