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The African Development Bank set to initiate the second phase of the SCPZ project.

SCPZ projectThe African Development Bank •Nigeria


President, AfDB, Dr. Akinwunmi

Adesina



The African Development Bank (AfDB) has announced its intention to initiate Phase II of the Staple Crop Processing Zone project (SCPZ).


Lamin Barrow, the Director General of AfDB, made this revelation during the SCPZ's inception workshop in Abuja. He emphasized that due to the remarkable success of the first phase, as many as 23 states have expressed their eagerness to participate in this project.


These states include Lagos, Anambra, Benue, Ekiti, Delta, Gombe, Ondo, Jigawa, Katsina, Kebbi, Kogi, Nasarawa, Niger, Bayelsa, Bauchi, Ebonyi, Enugu, Osun, Rivers, Sokoto, Taraba, and Borno.


Barrow highlighted that Dr. Akinwunmi Adesina, the President of AfDB, had described the SCPZ as a game-changer for agriculture in Nigeria. It aims to provide world-class infrastructure to support food agribusinesses, develop competitive value chains, and establish logistic systems that promote food processing and value addition.


Additionally, Barrow noted that the SCPZs would contribute significantly to generating wealth and jobs in rural areas, transforming them from zones of economic hardship into zones of economic prosperity.


He disclosed that the first phase of the project, initiated in 2022, is currently underway in seven states: Cross River (cocoa, rice, and cassava); Imo (beef and dairy livestock); Kaduna (tomato, maize, and ginger); Kano (rice, tomato, groundnuts, and sesame oil); Kwara (livestock); Ogun (cassava, rice, poultry, and fisheries); and Oyo (cassava, soybean, rice). It is also being implemented in the Federal Capital Territory, Abuja (beef and dairy livestock).


The Director General explained that the selection of states for the first phase was based on their preparedness and the goal of achieving a balanced representation across the six geo-political zones. He revealed that the AfDB, along with key development partners, is co-financing the first phase with a value of $538.05 million.


The program encompasses four main components, including support for the development of climate-adapted infrastructure for agro-industrial hubs, enhancement of agricultural productivity and enterprise development to strengthen value chains and job creation in the SCPZ catchment areas, as well as support for agro-industrial zone policy, institutional development, and program coordination and management.


"During Phase 1, approximately 1.5 million households were expected to benefit directly across the agricultural value chain, including private agribusinesses, agro-processors, smallholder farmers, agripreneurs, and agro-dealers," Barrow noted.


The SCPZs are anticipated to generate a minimum of 400,000 direct jobs and an additional 1.6 million indirect jobs during both the construction and operational phases. The majority of these jobs will come from micro, small, and medium enterprises, as well as factories within the value chain and tenant industries in the agro-industrial hubs.

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