The African Development Bank Group (AfDB) has reaffirmed its commitment to Nigeria’s economic growth with the release of a new Country Strategy Paper (CSP) aimed at transforming the agricultural sector, supporting rural development, and empowering young entrepreneurs.
AfDB’s Nigeria Country Department Director General, Dr. Abdul Kamara, led a delegation to meet with Finance Minister Wale Edun, where they discussed key areas of collaboration, including agribusiness, infrastructure development, and youth empowerment.
One of the major programs under the new AfDB plan is the National Agricultural Growth Scheme (NAGS), designed to strengthen food security and rural development in Nigeria. Additionally, AfDB has made significant investments in Special Agro-Industrial Processing Zones (SAPZ), particularly in Sokoto, and plans to expand these projects to Cross River and Kaduna States.
Minister Edun commended AfDB President, Dr. Akinwumi Adesina, for his leadership in supporting Nigeria’s infrastructure, agriculture, and youth development.
Financial Support for Agribusiness and Youth Entrepreneurs
AfDB is also driving initiatives to support youth entrepreneurship in Nigeria through programs such as the Youth Enterprise Investment Fund, aimed at increasing economic inclusion and job creation.
Last week, Dr. Adesina announced plans for:
- A $500 million facility to support agribusinesses.
- A $10 billion facility for smallholder farmers across Africa.
During a High-Level Conference on Scaling Finance for Smallholder Farmers in Nairobi, Dr. Adesina outlined innovative financing mechanisms to bridge the funding gap for farmers. These include:
- Trade credit guarantees
- Blended finance arrangements
- First-loss coverage to de-risk lending.
Africa’s Agricultural Growth and Financial Challenges
Despite increasing funding commitments—from $30 billion to $72 billion since the Dakar 2 Feed Africa Summit in 2023—African farmers still face significant financial barriers.
- Less than 20% of smallholder farmers in Africa use improved seeds.
- Only 6% have access to loans for agricultural expansion.
- Many financial institutions see smallholder farmers as high-risk borrowers due to lack of collateral and climate instability.
- Bank lending to farmers is below 5% of total loan portfolios in many African nations, despite agriculture being a key economic driver.
Recognizing AfDB’s contributions, Kenyan President William Ruto recently honored Dr. Adesina with Kenya’s highest national award while urging global action to unlock Africa’s agricultural potential.
With 77 AfDB-approved projects worth $3.9 billion across 32 countries, and another $1.72 billion in approvals expected this year, the Bank is playing a pivotal role in transforming Africa’s agricultural sector.
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