The African Development Bank has approved a $134 million loan to Nigeria for local food production.
The National Agriculture Growth Scheme – Agro Pocket initiative would assist farmers’ livelihoods to become more resilient.
The African Development Bank Group’s Board of Directors authorized a $134 million loan for Nigeria’s National Agriculture Growth Scheme – Agro Pocket program on Friday in order to increase food production and improve livelihood resilience.
The initiative will help to accelerate the implementation of essential legislative and institutional changes, as well as increase private sector engagement in agriculture. This will contribute to an increase of 7 million tonnes in cereals and oil grains output to 35 million tonnes. It will also raise average grain yields from 1.42 to 2 tonnes per hectare over the implementation period of September 2022 to December 2023.
The initiative complements the Bank’s African Emergency Food Production Facility and will aid Nigeria’s efforts to alleviate the effects of the Ukrainian war. Food costs have been fast rising due to increased volatility induced by the Covid-19 outbreak, which has been exacerbated by the conflict.
The initiative also complements the Bank’s Ten-Year Strategy by promoting climate-resilient agriculture and focusing on vulnerable populations such as youth and women.
Nigeria, Africa’s most populated country, is expected to grow to 402 million people by 2050, up from 206 million in 2020, making it the world’s third-most populous country. The majority of its rural population, which accounts for 48 percent of the population, generates up to 90 percent of national production.
However, little farmer assistance has forced them to rely on old agronomic approaches, resulting in low production and restricted potential for value addition. Harvested cereal area and yields fell by 2.75 percent and 1.5 percent, respectively, in 2020.
The initiative would emphasize support for five critical crops: maize, rice, wheat, soya beans, and sorghum, according to Lamin Barrow, Director General of the Bank’s Nigeria Country Department.
According to him, the National Agriculture Growth Scheme – Agro Pocket initiative is based on the National Agriculture Technology and Innovation Policy (2022-27), which intends to modernize Nigeria’s agriculture industry in response to shifting global food systems and supply networks. The initiative will supplement the country’s Bank-supported programs, notably the Special Agricultural Special Zones.
“The Bank will assist the Federal Government in establishing a strong institutional framework, including the establishment of the National Agriculture Growth Scheme – Agro Pocket program Secretariat as the administrative vehicle to oversee the implementation of the Agro-Pocket Scheme, whose precursor is the highly successful e-wallet scheme that was implemented in Nigeria between 2012 and 2015,” he said.
Barrow emphasized that the National Agriculture Growth Scheme – Agro Pocket initiative will assist farmers’ livelihoods to become more resilient, increase farmers’ access to better seeds, and raise the ability of industry players.
“Cushioning the poor from the consequences of greater food and energy costs requires immediate and sustainable policies, such as increased public investment in agriculture,” said Beth Dunford, the Bank’s Vice President for Agriculture, Human and Social Development.
The African Development Bank oversaw the mobilization of $538 million for the flagship Special Agro-Industrial Processing Zones initiative in Nigeria, which aims to establish value chains for important agricultural commodities and turn rural communities into industrial hubs.