The African Development Bank Group (AfDB) has unveiled a new Country Strategy Paper aimed at advancing agricultural development and stimulating economic growth in Nigeria.
The Director General of AfDB’s Nigeria Country Department Kamara, announced the launch of the strategy, reaffirming the Bank’s ongoing commitment to transformative initiatives in the country. A key focus of the strategy is the second phase of the National Agricultural Growth Scheme (NAGS), which aims to address food security and foster rural development.
In a recent meeting with Nigeria’s Finance Minister, Wale Edun, Kamara discussed deepening collaboration in critical sectors. He also highlighted progress in infrastructure development within the Special Agro-Industrial Processing Zones (SAPZ), with successful initiatives already underway in Sokoto. Plans for expansion in Cross River and Kaduna States are also in progress.
AfDB is further supporting Nigeria’s youth entrepreneurship through programs like the Youth Enterprise Investment Fund, which is designed to create jobs and promote economic inclusion among young Nigerians.
Minister Edun praised the Bank’s pivotal role in Nigeria’s economic revitalization, particularly in agriculture, infrastructure, and youth empowerment.
$500 Million Facility to Support African Smallholder Farmers
The AfDB’s commitment to agriculture extends beyond Nigeria. Last week, AfDB President Akinwumi Adesina introduced a $500 million facility aimed at unlocking $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, Dr. Adesina outlined the Bank’s innovative approach to closing Africa’s agricultural financing gap. This includes trade credit guarantees, blended finance mechanisms, and first-loss coverage, which aim to reduce transaction costs and improve access to financing for farmers and agribusinesses.
The conference, organized in partnership with the Pan African Farmers’ Organization (PAFO), focused on addressing the $75 billion annual financing gap that Africa faces in supporting its farmers. Dr. Adesina also emphasized the need for global collaboration to unlock Africa’s agricultural potential.
AfDB’s Broader Commitment to Agriculture
The African Development Bank has already committed $10 billion to agricultural projects across the continent, approving 77 projects worth $3.9 billion in 32 countries. The Bank plans to approve an additional $1.72 billion this year to further support agricultural development.
Despite these efforts, challenges remain. Only 6% of smallholder farmers in Africa have access to credit, and fewer than 20% use improved seeds. Financial institutions often view smallholder farmers as high-risk borrowers due to climate variability and limited collateral, leading to minimal bank lending to agriculture—often less than 5% of total loan portfolios in many African countries, despite agriculture being a key driver of the economy.
