Federal Government, African Development Bank, AfDB, International Fund for Agricultural Development, IFAD, and Islamic Development Bank, and other stakeholders, have moved to accelerate implementation of the Special Agro-Industrial Processing Zones 1 (SAPZ 1) Project as food inflation remains high and Nigerians struggle to survive. Minister of Agriculture and Food Security, Sen, Abubakar Kyari, in a remark at a two-day ‘Special Agro-Industrial Processing Zones, SAPZ, States Steering and Technical Committee Workshop and Validation of the SAPZ Programme Operational Guidelines’ ongoing in Abuja, said there are actually challenges responsible for the slow implementation of the Programme in the eight States; Kaduna, Kano, Kwara, Imo, Cross River, Ogun, Oyo, and the Federal Capital Territory, FCT. Meanwhile, Kyari commended the funding partners, AfDB, IFAD, Islamic Development Bank for believing in the project despite some challenges, which he said these challenges identified could be transformed into opportunities.
The Special Agro-Industrial Processing Zones 1 (SAPZ 1) High-Level Implementation Acceleration Dialogue, was organised by the Federal Ministry of Agriculture and Food Security. Basically, the forum is to ensure the acceleration of Nigeria’s agricultural transformation through SAPZ, which is a flagship initiative, developed in collaboration with the AfDB, IFAD, IsDB and other key stakeholders, with the aim to revitalise Nigeria’s agricultural sector, create thousands of jobs, and promote sustainable economic growth through private sector investments. The Special Agro Industrial Processing Zones (SAPZ) Programme supports Nigeria’s inclusive and sustainable agro-industrial development. It promotes environmental sustainability by adopting climate smart practices, conserving biodiversity, and managing natural resources responsibly. The key expected outputs of the SAPZ Programme (Phase I) are: development of infrastructure for eght (8) Agro-Industrial Processing Hubs (AIHs), 15 Agricultural Transformation Centers (ATCs), 2,300 ha of irrigated lands and farm to market access roads; supply of certified agricultural inputs and extension services; skills development for farmers and Micro Small and Medium Scale Enterprises (MSMEs), an updated agro-industrial zone policy and establishment of regulatory institution/special regulatory regime. SAPZ Program (Phase I) will be implemented over five years (2022 – 2026). The total cost for the SAPZ Programme (Phase 1) estimated at $538.05 million net of taxes. He said “as you are aware SAPZ Phase 1 is currently implemented in seven States and the Federal Capital Territory, FCT. This Phase no doubt is facing challenges ranging from transparency in project execution, delays in approval processing, and procurement issues across various financiers. These challenges have the potential to derail our progress but I am confident that with collective determination we will find solutions and the required results.”
He also pointed out that, “the objective of this two-day workshop is to deliberate on the existing challenges and forge an accelerated implementation plan that would enable us achieve Mr President’s food security.” Also the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, in his remarks asserted that in a very short time food needs to be produced, and with food production inflation would be brought down. Meanwhile he acknowledged and commended the efforts of the private sector that had keyed into the SAPZ Programme. He said “we are in a situation we are looking at stop gap importation in a very short time although it is been carefully coralgraphed to ensure we do not destroy incentives and disrupt domestic production, farming , milling and processing. In very short time we need to produce enough food. Food is 590 per cent the consumer price index, you can imagine we have inflation over 30 per cent as you know but is coming down but you can imagine how successful food production can bring down inflation, that would bring down interest rates and strengthen the exchange rate and it would enable the private sector to investing more because it becomes affordable to borrow. We are determined to provide food at an affordable price.” He also added that based on the effort of government and stakeholders SAPZ Project cannot afford to fail. Earlier, the Director General, Nigeria Country Department, Abdul Kamara, said the only solution to stop raw agricultural produce export is the acceleration of SAPZ’ s implementation in order to rapidly grow and develop Nigeria’s agricultural sector and agribusiness.
“Acceleration of the implementation of the SAPZ is imperative and we must show commitment to Phase 1 of the programme”, Kamara said. Meanwhile, the Country Director, IFAD, Dede Ekoue, in her remarks, called for acceleration We need to do more and address he challenges hindering the implementation. Ekoue said: “As indicated by the DG of AfDB, we must work together to address the challenges affecting implementation. Key actions to consider include strengthening coordination at all levels, bolstering technical capacity with additional seasoned experts, addressing financial incentives, and continuing to ensure highly competitive recruitment to attract the best resource persons for this innovative yet complex program. Additionally, compliance by all actors with the financial agreement governing the program’s implementation—particularly regarding fiduciary and human resource matters—must be ensured. IFAD will continue to strengthen the capacities in these areas. IFAD reiterates its strong commitment, as one of the key development partners supporting SAPZ 1, to working with all parties involved to fast-track the pace of implementation. IFAD is currently implementing in coordination with the Kano State Government an accelerated pilot aimed at boosting the capacity of rice and tomato farmers while strengthening their linkage with off-takers.”
