The African Development Bank (AfDB) has launched a new Country Strategy Paper to strengthen its support for Nigeria's economic transformation.
Dr. Abdul Kamara, AfDB's Director General for Nigeria, led a delegation to meet with Finance Minister Wale Edun to discuss key development projects and deepen collaboration in critical sectors.
As part of its commitment, the AfDB is advancing the second phase of the National Agricultural Growth Scheme (NAGS) to enhance food security and rural development. Additionally, the Special Agro-Industrial Processing Zones (SAPZ) initiative is progressing, with infrastructure development in Sokoto and planned expansions in Cross River and Kaduna States.
The Bank is also prioritizing youth empowerment through initiatives like the Youth Enterprise Investment Fund, aimed at fostering job creation and economic inclusion.
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Minister Edun commended the AfDB for its role in revitalizing Nigeria's economy, particularly in agriculture, infrastructure, and youth entrepreneurship.
Meanwhile, AfDB President Dr. Akinwumi Adesina recently announced a $500 million facility designed to unlock $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, he outlined a strategy that includes trade credit guarantees, blended finance mechanisms, and first-loss coverage to address the $75 billion annual financing gap in Africa's agriculture sector.
Adesina emphasized the urgent need to increase financial access for farmers, as only 6% of African smallholder farmers currently have access to credit, and fewer than 20% use improved seeds. He urged global stakeholders to support Africa's agricultural potential, noting that the AfDB has already committed $10 billion to the sector, with 77 approved projects worth $3.9 billion in 32 countries and an additional $1.72 billion set for approval this year.
Despite agriculture being a key economic driver, financial institutions remain hesitant to lend to smallholder farmers, with the sector receiving less than 5% of total loan portfolios across many African nations due to perceived risks such as climate variability and lack of collateral.
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