The African Development Bank Group (AfDB) has introduced a new Country Strategy Paper aimed at strengthening agriculture and driving economic growth in Nigeria.
Dr. Abdul Kamara, Director General of AfDB’s Nigeria Country Department, led a delegation to meet with Finance Minister Wale Edun, reinforcing the Bank’s commitment to transformative projects. Among these is the second phase of the National Agricultural Growth Scheme (NAGS), which focuses on food security and rural development.
Dr. Kamara also highlighted infrastructure progress in the Special Agro-Industrial Processing Zones (SAPZ), noting advancements in Sokoto and planned expansions in Cross River and Kaduna States.
AfDB further reaffirmed its support for youth entrepreneurship, particularly through initiatives like the Youth Enterprise Investment Fund, designed to create jobs and promote economic inclusion.
AfDB’s Commitment to African Agriculture
Finance Minister Wale Edun praised AfDB’s role as a key partner in Nigeria’s development, particularly in agriculture, infrastructure, and youth empowerment.
Last week, AfDB President Dr. Akinwumi Adesina unveiled plans for a $500 million facility to unlock $10 billion in financing for smallholder farmers and agribusinesses across Africa. Speaking at the High-Level Conference on Scaling Finance for Smallholder Farmers in Nairobi, Dr. Adesina outlined the Bank’s strategy, which includes:
• Trade credit guarantees
• Blended finance mechanisms
• First-loss coverage to close the financing gap for farmers
These financial instruments aim to lower transaction costs and mitigate risks for smallholder farmers, with the backing of technical assistance.
Addressing Africa’s Agricultural Financing Gap
The conference, organized in partnership with the Pan African Farmers’ Organization (PAFO), tackled Africa’s $75 billion annual financing gap in agriculture.
Dr. Adesina, recently honored with Kenya’s highest national award by President William Ruto, urged global action to unlock Africa’s agricultural potential. AfDB has committed $10 billion to the sector, already approving 77 projects worth $3.9 billion in 32 countries, with an additional $1.72 billion planned for approval this year.
However, significant challenges remain:
• Only 6% of African smallholder farmers have access to credit
• Fewer than 20% use improved seeds
• Agriculture accounts for less than 5% of total bank lending across many African countries, despite being a major economic driver
AfDB continues to push for innovative solutions to de-risk agricultural investments and ensure that Africa’s farmers can access the resources they need to thrive.