All is now set for the African Development Bank (AfDB) to disburse $540 million to the first batch of states in Nigeria for the development of Special Agro-Industrial Processing Zones (SAPZs).
This is part of steps by the Federal government and the bank to ensure food security in the country.
Three states – Oyo, Kaduna and Cross River – are to benefit from phase one of the development of processing zones, while others are to get theirs as soon as they are through with documentation.
Already, Vice President Kashim Shettima has called for immediate action, saying it is time for the government and its development partners to walk the talk.
Senior Special Adviser on Industrialization to Akinwunmi Adesina, AfDB President, Prof. Banji Oyelaran-Oyeyinka, disclosed this on Monday when a delegation of the bank and that of the United Nations Industrial Development UNIDO presented their separate reports on the status of projects being executed in Nigeria to Vice President at the Presidential Villa.
Making AfDB’s presentation to the Vice President, Oyelaran-Oyeyinka said: “The Special Agro-Industrial Processing Zones (SAPZ) is an initiative of the African Development Bank that is aimed at turning the rural landscape into economic zones of prosperity and harnessing the power of commercial agriculture and food.
“We raised $540,000,000 in catalytic funding and we expect every state to find a partner that will bring equity and join up with them. It is a government-enabled project but private-sector driven.
The SSA to the AfDB President further explained that the first phase of SAPZs is being implemented in seven states, namely Cross River, Imo, Kaduna, Kano, Kwara, Ogun, and Oyo, as well as the Federal Capital Territory (FCT).
“Ogun State found a partner for the project and decided not to take the loan. We are basically going to distribute the loan to the other states. The next thing is preparation for phase two with 27 states. The demand is enormous but we have to prioritise those who move fast.
“We have set up eligibility criteria for the states and to rank them. We expect them to have a feasibility report, environmental impact study and a commitment to counterpart funding,” Oyelaran-Oyeyinka added.
In another report on the visit to the Ajaokuta Steel Company Limited as earlier commissioned by the Vice President, the Head of Investment and Technology Promotion Office at the United Nations Industrial Development Organization (UNIDO), Abimbola Olufore Wycliffe, told VP Shettima that the recovery plan for the company would include revitalizing through rehabilitation, modernization and expansion.
She said: “Single-phase turnaround for the entire plant is challenging due to heavy investments and a prolonged revenue generation timeline. Convert the integrated steel plant into strategic business units (SBUs) to serve as profit centers.
“Conduct opportunity studies for each SBU, focusing on incremental investments, raw material availability, labor, utilities, and market demand. Prioritize SBUs with lower investments and quicker positive cash flows (the low-hanging fruits).”
She further called for the reinvestment of profits from each SBU in ASC to reduce the burden of incremental investment on the Nigerian economy, even as she recommended the enhancement of foreign exchange earnings and contribution to local economic development in the country.