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AfDB Unveils Bold Strategy to Boost Nigeria’s Agriculture and Infrastructure—Here’s What You Need to Know

By Achimi Muktar

The African Development Bank (AfDB) is set to reshape Nigeria’s agricultural and infrastructure landscape with the launch of a new Country Strategy Paper (CSP). The ambitious plan, designed to stimulate food security, rural development, and infrastructure expansion, underscores AfDB’s long-term commitment to transforming Nigeria’s economy.

During a high-level meeting in Abuja, Dr. Abdul Kamara, Director General of AfDB’s Nigeria Country Department, met with Finance Minister Wale Edun to solidify this strategic partnership.

Key Areas of Focus: Agriculture & Infrastructure Growth

As part of the new strategy, AfDB is set to roll out:
✅ The Second Phase of the National Agricultural Growth Scheme (NAGS): Aimed at improving food security and supporting rural farmers.
✅ Expansion of Special Agro-Industrial Processing Zones (SAPZ): With progress in Sokoto and planned expansions in Cross River and Kaduna States, these zones will enhance agricultural processing and supply chain efficiency.

Empowering Nigeria’s Youth Through Entrepreneurship

Beyond agriculture and infrastructure, AfDB is investing heavily in youth entrepreneurship. The Youth Enterprise Investment Fund will provide young Nigerians with funding opportunities to start businesses and drive economic inclusion.

Finance Minister Wale Edun commended the AfDB for being a key partner in Nigeria’s economic revitalization, particularly in areas of agriculture, infrastructure, and job creation.

A Game-Changer for Africa’s Farmers—$500M to Unlock $10B in Financing

AfDB President Dr. Akinwumi Adesina recently announced a $500 million facility that will 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, Adesina detailed the bank’s innovative financing approach, which includes:

Trade credit guarantees

Blended finance mechanisms

First-loss coverage to mitigate risks

These financial tools aim to bridge Africa’s $75 billion annual financing gap for farmers and agribusinesses.

The Bigger Picture: AfDB’s Growing Investment in Africa’s Agriculture

Since the 2023 Dakar 2 Feed Africa Summit, the bank has made significant progress:

34 African heads of state have committed to food security and sovereignty.

Financial pledges from development partners have jumped from $30 billion to $72 billion in under a year.

The AfDB has committed $10 billion, with $3.9 billion already approved for 77 projects in 32 countries.

The Challenges Ahead—Why Financing Farmers Is Still an Uphill Battle

Despite these efforts, millions of African farmers still lack access to financing:
⚠ Only 6% of smallholder farmers in Africa have access to credit.
⚠ Fewer than 20% use improved seeds.
⚠ Bank lending to agriculture remains below 5% of total loan portfolios in many African countries, despite the sector being a major economic driver.

Many financial institutions see smallholder farmers as high-risk borrowers due to climate change, lack of collateral, and unpredictable market conditions.

What This Means for Nigeria

With AfDB’s multi-billion-dollar backing, Nigeria’s agriculture and infrastructure sectors could see unprecedented growth—but only if these funds reach the right people.

Will this new Country Strategy Paper be the turning point for Nigeria’s farmers and young entrepreneurs? Only time will tell.