AfDB Approves $134m Loan For Nigeria To Boost Local Food Production

The Board of Directors of the African Development Bank (AfDB) Group has approved a $134 million loan for the National Agriculture Growth Scheme – Agro Pocket programme in Nigeria to scale up food production and boost livelihood resilience.

The AfDB said the programme will support fast-tracking of the implementation of key policy and institutional reforms and boost private sector participation in agriculture.

This, it added, will help increase cereals and oil grains production by seven million tonnes to 35 million tonnes, and also increase average cereal yields from 1.42 tonnes to two tonnes per hectare during the September 2022-December 2023 implementation period.

According to the AfDB, “the programme aligns with the Bank’s African Emergency Food Production Facility and will support Nigeria’s efforts to mitigate the impacts of the war in Ukraine. Food prices have been rising rapidly due to higher volatility caused by the Covid-19 pandemic, aggravated by the war.

“The programme also aligns with the Bank’s Ten-Year Strategy as it promotes climate-resilient agriculture and targets the vulnerable population, including youth and women.”

It further noted that Nigeria, Africa’s most populous nation, is projected to hit 402 million by 2050 from 206 million people in 2020, making it the third-most populous country globally. The bulk of its rural population, representing 48 per cent of the populace, produces up to 90 per cent of the national output.

However, the AfDB said inadequate support for the farmers has confined them to traditional agronomic techniques, resulting in low productivity and limited opportunities for value addition. In 2020, the harvested cereals area and yields declined by 2.75 per cent and 1.5 per cent, respectively.

Director-General of the Bank’s Nigeria Country Department, Lamin Barrow,  said the programme would prioritise support for five strategic crops: maize, rice, wheat, soya beans and sorghum, with a particular focus on wheat value chains.

He said National Agriculture Growth Scheme – Agro Pocket programme is anchored in the National Agriculture Technology and Innovation Policy (2022-27) which aims to modernise Nigeria’s agriculture sector in line with changing global food systems and supply chains.

The programme will complement Bank-supported operations in the country, particularly in the Special Agricultural Special Zones.

“The Bank will support the Federal Government to put in place a robust institutional framework, including operationalisation of the National Agriculture Growth Scheme – Agro Pocket programme Secretariat as the administrative vehicle to oversee the implementation of the Agro-Pocket Scheme, whose precursor is the highly successful e-wallet scheme that was rolled out in Nigeria between 2012 and 2015,” Barrow said.

Beth Dunford, the Bank’s Vice President, Agriculture, Human and Social Development, said:

“Cushioning the poor from the effects of higher food, and energy costs, requires urgent and sustainable policy, such as increased public expenditure on agriculture.”

The African Development Bank led the mobilisation of $538 million for the flagship Special Agro-Industrial Processing Zones programme to develop value chains for strategic agriculture commodities in Nigeria and transform rural areas into zones of economic prosperity.

By Joseph Inokotong

https://tribuneonlineng.com/afdb-approves-134m-loan-for-nigeria-to-boost-local-food-production/