The African Development Bank wants to help Nigeria’s agriculture with $2.2 billion

Akinwumi Adesina, president of the African Development Bank, announced on Tuesday that the bank is mobilizing $2.2 billion to establish agricultural processing zones in 28 Nigerian states in an effort to increase food security and generate employment.

Speaking in northern Kaduna state, Adesina introduced the initiative’s initial phase, which aims to reach five states. More than $500 million, first announced in 2022, is funding this phase.

According to the AfDB president, the AfDB board will soon be presented with the finance requirements for the second phase for approval.

At the Kaduna ceremony, he stated, “I would like to say that we have been able to mobilize $2.2 billion of investment interest to support the second phase across Nigeria.”

Adesina stated that in addition to the AfDB, the $2.2 billion would be raised by French and American institutions, the agri-investment fintech Sahara Farms, the Africa Import-Export Bank, and the Arab Bank for Economic Development.

By constructing facilities to process agricultural products closer to farmers, the agro-processing zones hope to enhance value chains from fields to markets and lower post-harvest losses.

According to the AfDB, Nigeria spent $4.7 billion on food imports last year; officials seek to buck this trend with more funding for agriculture.