The federal government has said it would collaborate with the African Development Bank (AfDB) to promote and develop Special Agro-Industrial Processing Zones (SAPZS) in the country.
The minister of State for Agriculture and Rural Development, Hon Mustapha Baba Shehuri who disclosed this said the move will enable both local and foreign investors to advance the level of trade and investments in the a nation’s agricultural sector.
The minister while speaking at the Ecobank Agribusiness Summit with the theme ‘’ Unlocking productivity and investment opportunities across Nigeria’s agribusiness value chain’’, held in Lagos yesterday, said the special agric processing zones would serve as a veritable strategy to diversify the economy.
Shehuri noted that there is need for a viable synergy and collaboration of all the relevant stakeholders including the financial sector as well as governments at various levels and the development partners.
He further said, “Within the overall set of policy principles, the federal government is concentrating on providing an enabling environment and a level playing ground for stakeholders at all levels to enhance investment and capital flow into the Agric sector.”
The minister noted that the Summit also marks another milestone and traction in the journey of economic diversification in line with the vision of the Economic Recovering and Growth Plan (ERGP) of the present administration of President Muhammadu Buhari. According to him, “To boost agricultural production, food security, promote innovative technologies and investment in the agricultural sector in order to achieve poverty reduction and job creation, especially for our aspiring youths, we need the support of all stakeholders.”
He emphasised that Nigeria’s potentials and prospects make the agricultural sector a pivot for economic stabilisation, diversification and growth in the country, adding that the sector is a major contributor to the National Gross Domestic Product (GDP) with about 27 per cent and the biggest in job creation in the non-oil sector.
The minister pointed out that “it is gladdening that this forum has brought together smallholder farmers, input dealers, agro-processors, development finance agencies, policy makers and the captains of industry under one roof to discuss the problems and challenges facing the agricultural sector with a view to finding solutions and way forward.’’
He reiterated that “the Federal Ministry of Agriculture and Rural Development, is presently providing vivid commitment to creating jobs through the on-going review of agricultural policy, focusing on technology and innovation for agricultural mechanisation, strengthening research and development, training and funding of extension services, in addition to livestock and diary development.
“With the noticeable growth in production in the agricultural sector of the economy, a major emphasis has been on stimulating agricultural export to increase our foreign exchange earnings. In doing this, we are giving attention to meeting the standard of the requirements of not only the local but also international markets.”
In his welcome address, the chief executive officer, Ecobank Nigeria, Mr Patrick Akinmuntan said, “Our immediate focus is to invest N70 billion in Agriculture financing within the next three years. With an initial take off tranche of N15 billion dedication funding in association with credible financing partners and instruments “.
In his presentation, the managing director, Nigeria Incentive Based Risk System for Agricultural Lending (NIRSAL), Mr Aliyu Abdulhameed, said that investors are in agribusiness primarily to make profit, adding that current local and global trend is to invest in the Agric sector.
He said, “To maximise its potential, the Nigeria agriculture sector requires business in areas like finance capital, technology capital among others.”