African Development Bank to raise $2.2 billion for Nigeria's agriculture

The African Development Bank is mobilising $2.2 billion to develop agricultural processing zones in 28 states in Nigeria to boost food security and create jobs, the bank's president Akinwumi Adesina said on Tuesday.

Adesina was speaking in northern Kaduna state while launching the first phase of the initiative that is targeting five states. This phase is being bankrolled by more than $500 million that was first announced in 2022.

The AfDB head said the funding needs for the second phase would be presented to the AfDB board shortly for approval.

"We have been able, I would like to say, to mobilize $2.2 billion of investment interest to support the second phase across Nigeria," he said during the ceremony in Kaduna.

Adesina said besides the AfDB, Arab Bank for Economic Development, Africa Import-Export Bank and agri-investment fintech Sahara Farms were among institutions that would help raise the $2.2 billion.

The agro-processing zones aim to create facilities to process agricultural produce closer to farmers, which will reduce post-harvest losses and strengthen value chains from farms to market.

Last year, Nigeria spent $4.7 billion importing food, the AfDB said, a trend authorities also hope to reverse with more investment in the farming sector.