The African Development Bank Group (AfDB) has launched a new Country Strategy Paper (CSP) aimed at accelerating agricultural growth, infrastructure development, and economic expansion in Nigeria.
A delegation, led by Dr. Abdul Kamara, Director General of AfDB’s Nigeria Country Department, met with Finance Minister Wale Edun to strengthen collaboration in key sectors and reaffirm AfDB’s commitment to transformative projects in Nigeria.
Key Focus Areas of the New Strategy
🔹 Agriculture & Food Security: The second phase of the National Agricultural Growth Scheme (NAGS) will prioritize food security and rural development.
🔹 Infrastructure Development: The Special Agro-Industrial Processing Zones (SAPZ) are progressing in Sokoto, with planned expansions in Cross River and Kaduna States.
🔹 Youth Entrepreneurship: The Youth Enterprise Investment Fund will create jobs and promote economic inclusion for young Nigerians.
AfDB’s Broader Commitment to Agriculture
Last week, AfDB President Dr. Akinwumi Adesina announced a $500 million facility to unlock $10 billion in financing for smallholder farmers and agribusinesses across Africa.
At the High-Level Conference on Scaling Finance for Smallholder Farmers in Nairobi, Dr. Adesina outlined innovative financing mechanisms, including:
✅ Trade credit guarantees
✅ Blended finance mechanisms
✅ First-loss coverage
These measures aim to reduce transaction costs and address Africa’s $75 billion annual agricultural financing gap.
Global Efforts to Strengthen Africa’s Agriculture
Since the 2023 Dakar 2 Feed Africa Summit, 34 African heads of state have committed to food security and agricultural sovereignty, with financial pledges growing from $30 billion to $72 billion in under a year.
📌 The AfDB alone has committed $10 billion, approving 77 projects worth $3.9 billion across 32 countries, with plans to approve $1.72 billion in additional projects this year.
Challenges and the Way Forward
Despite progress, only 6% of African smallholder farmers have access to credit, and fewer than 20% use improved seeds. Banks perceive smallholder farmers as high-risk borrowers, limiting agricultural lending to less than 5% of total loan portfolios in many African nations.
Dr. Adesina has called for global action to unlock Africa’s agricultural potential and transform the sector into a driver of economic growth and food security.
