Buhari Hails $538.05m SAPZ Provision from ADB, Others

President Buhari has welcomed the provision of $538.05 million by the African Development Bank, the Islamic Development Bank and the International Fund for Agricultural Development for the first phase of the Special Agro-Industrial Processing Zones (SAPZ) for Nigeria programme.

The President gave this commendation in his goodwill message to the Feed Africa Summit of Heads of State and Government taking place in Dakar, Senegal.

“I am pleased with the partnership approach used for Nigeria by the multilateral financing institutions, with the African Development Bank providing $210 million, the Islamic Development Bank and the International Fund for Agricultural Development providing $310 million, and the Government of Nigeria providing $18.05 million.

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‘‘The Special Agro-Industrial Processing Zones are game changers for the structural transformation of the agricultural sector.

‘‘I therefore urge that as we develop the Food and Agriculture Delivery Compacts from this Summit, special attention should be placed on the development of Special Agro-Industrial Processing Zones,’’ he said.

President Buhari also used the occasion to call for affordable financing to support smallholder and commercial farmers, underscoring the need for dedicated financing windows from the central banks.

‘‘Access to affordable finance is critical for the success of efforts to support smallholder farmers and commercial farmers. Commercial banks do not lend much to agriculture due to the perception of high risks.

‘‘Generally, less than 3% of total financing by commercial banks in Africa go into agriculture. We must therefore reduce the risks of lending faced by commercial banks. But we must go beyond commercial lending.

‘‘Where possible and countries can afford to, the central banks can also dedicate significant resources to complement lending from commercial banks.

‘‘Such dedicated financing windows from the central bank must be well monitored, to ensure that they reach the intended beneficiaries, must be transparent and must not crowd out the commercial lending sectors, or the private sector.”

President Buhari commended Dr. Akinwunmi Adesina, President of the African Development Bank for the vision to drive the Summit, together with the African Union Commission.

‘‘Dr. Adesina has continued to do an excellent job at the helm of the African Development Bank,’’ he said.