From Our Correspondent
The African Development Bank (AfDB) says it will commence disbursement of 540 million dollars to states, in the first phase of its development of Special Agro-Industrial Processing Zones (SAPZs).
Prof. Banji Oyelaran-Oyeyinka, Senior Special Adviser on Industrialisation to the AfDB President, announced the facility while presenting a report to Vice-President Kashim Shettima, on Monday, in Abuja.
Oyelaran-Oyeyinka led a delegation of the bank and that of the UN Industrial Development Organisation (UNIDO) to present their separate reports on the status of projects being executed in Nigeria.
Three states will benefit from the first phase of the development of processing zones. They are Cross River, Kaduna and Oyo states.
While others are to get theirs as soon as they are through with documentation.
Oyelaran-Oyeyinka explained that SAPZ was an initiative of the AfDB aimed at turning the rural landscape into economic zones of prosperity and harnessing the power of commercial agriculture and food.
“The primary objective is to support inclusive and sustainable agro-industrial development in Nigeria. Phase one of the project is at the point of disbursement.
“Kaduna, Oyo and Cross River States are all in the process of receiving disbursements and we hope that the other states can speed up with their documentation so that we can fast-track these states.
“We raised 540 million dollars in catalytic funding and we expect every state to find a partner that will bring equity and join up with them.
“It is a government-enabled project but private-sector driven,” the Special Adviser said.
He further stated that the first phase of SAPZs is being implemented in seven states, namely Cross River, Imo, Kaduna, Kano, Kwara, Ogun, and Oyo, as well as the Federal Capital Territory (FCT).
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“Ogun state found a partner for the project and decided not to take the loan. We are going to distribute the loan to the other states.
“The next thing is preparation for phase two with 27 states. The demand is enormous but we have to prioritise those who move fast.
“We have set up eligibility criteria for the states and to rank them. We expect them to have a feasibility report, environmental impact study and a commitment to counterpart funding.”
Also, the Head of Investment and Technology Promotion Office, UNIDO), Abimbola Wycliffe, told the Vice-President that the recovery plan for the Ajaokuta Steel Company Ltd.. would include revitalising through rehabilitation, modernisation and expansion.
“Single-phase turnaround for the entire plant is challenging due to heavy investments and a prolonged revenue generation timeline.
“Convert the integrated steel plant into strategic business units (SBUs) to serve as profit centres.
“Conduct opportunity studies for each SBU, focusing on incremental investments, raw material availability, labour, utilities, and market demand.
“Prioritise SBUs with lower investments and quicker positive cash flows (the low-hanging fruits),” Wycliffe said.
She called for the reinvestment of profits from each SBU in ASC to reduce the burden of incremental investment on the Nigerian economy.
The UNIDO officer recommended the enhancement of foreign exchange earnings and contribution to local economic development in the country.
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