AfDB, IDB, IFA Inject $1bn To Fund Nigeria’s SAPZs

The Africa Development Bank (AfDB), Islamic Development Bank (IDB) and the International Fund for Agricultural Development have voted $1billion to deliver special agro-industrial processing zones in 24 States of Nigeria. This is in addition to an initial $520 million voted by the development partners for the development of eight special agro-industrial processing zones in the country. Mr Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, Office of the Vice-President, in a statement said the President of AfDB, Dr Akinwumi Adesina, disclosed this in the United States. Adesina spoke at the Norman Borlaug International Dialogue, World Food Prize 2023, in Des Moines, Iowa. Vice-President Kashim Shettima, who is attending the event in pursuance of the food security and diversification policy of the Tinubu administration, had on Wednesday delivered his keynote address at the ongoing Dialogue. In a speech titled, “From Dakar to Des Moines”, Adesina said that the decision to pump such huge funds into Nigeria’s agribusiness was part of the resolve to develop Special Agro-Industrial Processing Zones (SAPZs) in 13 countries. He said, “We are investing heavily in the development of SAPZs to support the development of agricultural value chains. “Food processing and value addition, enabling infrastructure and logistics to promote local, regional, and international trade in food. “The African Development Bank Group is investing $853 million in the development of the Special Agro-Industrial Processing Zones. “The bank has mobilized additional co-financing of 661 million dollars, for a total commitment of $1.5 billion.” Adesina said that the bank was deploying effective partnerships at scale, adding that currently it is implementing 25 Special Agro-industrial Processing Zones in 13 countries. “The AfDB and the International Fund for Agricultural Development provided $520 million for the development of eight special agro-industrial processing zones in Nigeria. “The second phase of the program aims to mobilize an additional $1 billion to deliver special agro-industrial processing zones in 24 States of Nigeria.” Adesina regretted that while much progress had been made in African agriculture, 283 million people still go to bed hungry, about a third of the 828 million people that suffer hunger globally. He described the Norman Borlaug International Dialogue World Food Prize 2023, as a journey and narrative combining the power of science, technology, policies and politics to ensure that Africa fully unlocks its agricultural potential, and feeds itself with pride. Adesina thanked Vice-President Kashim Shettima, and the President of Ethiopia, Sahle-Work Zewde, for participating in the global event. He said that their presence was an indication that Africa had the political will and was fully ready to tackle food insecurity as well as make hunger history on the continent. Earlier, Shettima, who spoke on the Tinubu administration’s initiatives for food security, said the quality of present leadership in Nigeria and the rest of Africa would drive transformation in agriculture and other sectors. He said, “A nation falls or rises fundamentally due to the quality of its leadership. “Right now, Africa is blessed with quite a handful of quality leaders that have the drive, passion and skills set to redefine the meaning and concept of modern leadership. “President Tinubu, my boss, is a good example, Macky Sall of Senegal and of course, Abdel Fattah El-Sisi of Egypt are doing wonderfully well. “Just to mention a few of the African leaders that are distinguishing themselves in leadership.” Shettima assured the gathering of investors and stakeholders in the agricultural sector that Tinubu was a quintessential 21st century modern African leader who is determined to redefine the meaning and concept of modern leadership. He added, “Be rest assured that there will be a change in the fortunes of the Nigerian nation and by extension, the African continent in the next couple of years because Nigeria is an anchor nation.” On wheat production, Shettima said the target of Nigeria towards wheat production was to achieve 50 per cent self sufficiency in the next three cycles. He said, “It is inconceivable that we are the second largest wheat importer in the world. Luckily, we have already procured the heat tolerant variety of wheat seeds. “And we are going to drive that process by supporting the farmers with the heat tolerant variety, agricultural extension services, fertilizer and also hope to increase the irrigation areas to 1 million hectares in the next cropping cycle. “We need to produce about 2.4 million tonnes of wheat grains in Nigeria. We are going to reach out to our farmers through small irrigation schemes and through digitalisation. “All the actors in the value chain will be sufficiently taken care of through innovative finance, partial credit guarantees and crop insurance.” On rice production, Shettima said the major challenge for Nigeria was the insufficiency of paddy rice. He said that Nigeria had adequate milling capacity, adding, “but, we need to produce three to four million tonnes of paddy rice to meet our requirement of about 2.5 million tonnes per annum. “We have 75 million hectares of arable land and most of it suited for rice cultivation. “We will provide our farmers with certified seeds, fertilizer, extension services, the digitlisation of services, inputs, finance and market information. ”Our target is to achieve self sufficiency in rice latest by 2027.” The vice-president, who spoke on SAPZs, reiterated the Tinubu administration’s commitment to providing an enabling environment for investors in the zones. He said government would create an SAPZ development authority that would operate like a one-stop shop where regulatory and associated issues would be addressed.

EU To Support Africa’s Infrastructure Drive With €150bn In 4 years

The European Union (EU) through its Global Gateway initiative has promised to disburse 150 billion Euros to Nigeria and other African countries to enhance infrastructure in over eight sectors. The disbursement of the fund which commences from this year to 2027, aims to enhance connectivity, promote sustainable development, and strengthen economic ties between the EU and its partner countries, including Nigeria. The EU Commissioner for International Partnerships, Jutta Urpilainen, who revealed this at the launch of the Global Gateway initiative in Abuja, added that the bloc would support Nigeria to achieve enhanced infrastructure connectivity, including transport, energy, digital networks; support agriculture, economic growth, health and education. She said: “It will also promote sustainable development and environmental protection; and foster cooperation and partnerships with Nigeria and other partner countries. “We are living in an increasingly fragmented world. The war that Russia started against Ukraine last year, the military takeover in Niger in July, and the escalation in Israel-Palestine conflict are just stark reminders of that. “In such a world, the Global Gateway strategy is our positive offer to build resilient connections in the world through strategic partnerships to jointly address the challenges of our times from fighting climate change to improving health systems. “Together, we intend to mobilise 300 billion Euros in investments by the year 2027, and half of them for Africa; it is 150 billion Euros by the year 2027; Nigeria features prominently in the Global Gateway investment package”, the commissioner added. Urpilainen further clarified that the EU would support the 5G rollout in Nigeria, as part of its efforts to support the digital economy as well as also working on a potential loan to support Small and Medium Enterprises (SMEs) in the digital and print sectors. According to her, the EU had committed financial resources to support the energy sector, including the setting up of mini grids and small hydropower plants for productive and public purposes. “In 2022, we launched a digital economic package for Nigeria. With EU and European Investment Banks, investments worth 820 million Euros, it is a lot of money,” she added. The EU commissioner described education as “the most transformative investment anyone could make. So, an empowerment project is being launched in North Western Nigeria in cooperation with government to promote quality basic education in the northern regions.” Urpilainen assured that the EU’s long-term commitment would support investments in key sectors of the Nigerian economy, namely Agriculture (€42,000,000), Energy (€37,000,000), Health (€45,000,000), Digital (€55,000,000), Education (€45,000,000), and Social Protection (€46,000,000). In his remarks, Minister of Communication, Innovation and Digital Economy, Dr. Bosun Tijani, said that the Global Gateway initiative was aimed at achieving collective regional and global prosperity was in full alignment with President Bola Ahmed Tinubu’s Renewed Hope agenda. He explained: “The core of this administration’s agenda is a developed Nigeria that is not only for a few, but for all, providing the Government the opportunity to actualize its plans in sectors that it wants to focus on. “Africa’s relationship with Europe has deep historical roots, and has been built on years of shared values, collaboration and mutual respect. “While we enjoy geographical proximity, we also have increasingly intertwined culture, and more importantly, a shared future,” the minister added. Tijani pointed out that working with the EU gave Nigeria the opportunity to leverage its structure and historical resources for global development, particularly for Africa.

Communication Ministry Targets $5bn Funding For Tech Startups By 2027

The Minister of Communications, Innovation and Digital Economy, Bosun Tijani has said that regulatory tools will be used, not only to increase investments but also attract up to $5 billion in funding for Nigerian tech startups by 2027. Tijani noted that by providing an enabling environment, innovators and entrepreneurs would be encouraged to develop unique solutions that would drive economic growth. The Minister revealed this at the unveiling of a document titled, ‘Accelerating our Collective Prosperity through Technical Efficiency: A Strategic Plan for the Federal Ministry of Communications, Innovation & Digital Economy’ Monday in Abuja. The document has five priority areas which includes, Knowledge; Policy; Infrastructure; Innovation, Entrepreneurship and Capital and Trade.   The document reveals, “For this 4th pillar, our primary objective is to stimulate the growth and sustainability of startups, with specific focus on those developing innovative solutions for criticalsectors in our economy. Increase capital raised by Nigerian tech startups 50% year-on-year from $1bn/yr in 2022 to $5bn/year in 2027.” Another target the Ministry has for tech startups is to increase domiciliation of local technology startups from less than 1 per cent to 25 per cent by 2027. The document said, “We will establish an active sandbox environment that encourages and empowers innovators and entrepreneurs to develop unique solutions for sectors historically considered to have limited exposure to technological innovation. “By removing regulatory barriers and providing the required support, we aim to inspire innovative, problem-solving approaches to existing challenges. “With the goal of supporting the diversification of the Nigerian economy, we will collaborate with other ministries and parastatals including private sector stakeholders to drive opportunities for startups to facilitate the application of technology for enhanced productivity in critical sectors across the country. We will back programmes focused on AgriTech, HealthTech, EdTech, MediaTech, CleanTech, CreTech, among others. “Identify opportunities for the digital economy in various sectors such as Agriculture, Financial Services, Healthcare, Education, Energy, Transportation and Logistics, Manufacturing, Retail and E-commerce, Textiles and Fashion, Media and Entertainment, eSports/Gaming, and Real Estate.”

Subsidy Removal: Infrastructure Bank To Provide Funding For CNG buses

As part of efforts to ease the hardship occasioned by the removal of petrol subsidy, the Infrastructure Bank has promised to provide funding for the Compressed Natural Gas (CNG) Mass Transit. According to the bank during a visit to the Permanent Secretary of Special Projects Dr. Okokon Udo Ekanem, part of the strategy will include collaborative efforts towards advancing sustainable infrastructure development. The team headed by Director in the Bank, Andrew Nweke, said the bank is committed to supporting the Federal Government in mitigating the effects of fuel subsidy removal through the promotion of Compressed Natural Gas (CNG) Mass Transit. According to him, the bank had dedicated funds towards financing CNG mass transit. Compressed Natural Gas (CNG) has emerged as a cleaner and more sustainable alternative to conventional fuels, offering significant economic and environmental benefits. He said TIB’s proactive stance in this endeavour aligns with its broader mission of fostering sustainable infrastructure development in Nigeria. Also speaking, the Acting Managing Director of the Bank, Mrs. Nkiru Chime, highlighted some of TIB’s achievements in the transport sector through the Move Nigeria Scheme (MNS). She said the bank has played a pivotal role in facilitating economic progress, adding that since the inception of the MNS, ithas disbursed about N47bn, resulting in the distribution of over 4,500 vehicles across all geopolitical zones. The scheme, she added, has created over 10,000 employment opportunities consequently and has contributed to the Gross Domestic Product through the transport sector. The transport sector contributed about 1.35 per cent to Nigeria’s GDP in the second quarter of this year. Chime added that the Move Nigeria Scheme (MNS) has become synonymous with TIB’s commitment to transforming the nation’s transportation landscape. By facilitating access to financing and resources, she said MNS has empowered numerous entrepreneurs and businesses to acquire vehicles, thereby stimulating economic activities across various sectors. According to her, the decision to allocate funds for the promotion of CNG Mass Transit underscores TIB’s responsiveness to the evolving energy landscape and its dedication to environmentally friendly and cost-effective transportation solutions.