FG Obtains $134M AfDB Facility to Scale Up Seed, Grain Output

AfDB Approves $134M Loan for Nigeria's Agricultural Growth

“Federal Government has secured a loan facility of $134m from the African Development Bank, AfDB, to...”

Nigeria gets $134M AfDB loan to scale up food production, reduce import dependence.

The Federal Government has secured a $134 million loan from the African Development Bank (AfDB) to boost seed and grain production for farmers across Nigeria. This exciting development was announced by Senator Abubakar Kyari, Minister of Agriculture and Food Security, during the launch of the 2024/2025 National Dry Season Farming in Calabar.

The event was attended by key stakeholders, including Cross River State Governor Bassey Otu, represented by Deputy Governor Peter Odey. The loan is expected to support the government's efforts to improve agricultural productivity and food security in the country.

It's worth noting that the AfDB has been actively involved in supporting Africa's agricultural sector, with a focus on promoting agro-industrialization and increasing food production. The bank's “Feed Africa” program aims to transform African agriculture by leveraging private sector investment, improving infrastructure, and introducing climate-smart agricultural systems.

Some of the key areas of focus for the AfDB's agricultural initiatives include:

Seed Production: Supporting local seed companies to produce high-quality seeds for farmers

Grain Production: Improving grain yields through the use of modern farming techniques and technologies

Climate-Smart Agriculture: Promoting agricultural practices that help farmers adapt to climate change

Agro-Industrial Processing Zones: Establishing special economic zones to support agricultural processing and value addition.

Overall, the $134 million loan from the AfDB is a significant boost to Nigeria's agricultural sector, and is expected to have a positive impact on food security and economic growth in the country.

“Federal Government has secured a loan facility of $134m from the African Development Bank, AfDB, to help farmers boost seeds and grain production in the country,” the statement read in part.

The Federal Government's reintroduction of national dry season farming is a strategic move to boost agricultural productivity throughout the year. This initiative is receiving a significant boost from a $134 million loan, which will play a crucial role in enhancing national food security.

According to Minister Abubakar Kyari, this project falls under the National Agricultural Growth Support Scheme-Agro Pocket (NAGS-AP), aimed at promoting sustainable agricultural development. The NAGS-AP project aligns with the African Development Bank's African Emergency Food Production Facility, supporting Nigeria's efforts to mitigate the impacts of the war in Ukraine on food prices.

Objectives of NAGS-AP:

Increase Cereal Yields: Enhance average cereal yields from 1.42 tonnes to 2 tonnes per hectare

Boost Food Production: Increase cereals and oil grains production by 7 million tonnes to 35 million tonnes

Support Strategic Crops: Prioritize support for maize, rice, wheat, soya beans, and sorghum, with a focus on wheat value chains.

By supporting farmers and promoting sustainable agriculture, the NAGS-AP project will contribute to Nigeria's food security and economic growth.

The Federal Government of Nigeria has declared food production a top priority, aiming to provide all Nigerians with easy access to quality and nutritious food at affordable rates. To achieve this goal, the government plans to revitalize the economy through the agricultural sector by boosting the production of staple crops such as wheat, rice, maize, sorghum, soybean, and cassava during both dry and wet farming seasons.

Support for Farmers

In line with this initiative, the government has already provided support to numerous farmers across the country. Under the 2023/2024 dry season program, 107,429 wheat farmers received support in the first phase, while 43,997 rice farmers were supported in the second phase. Additionally, during the 2024 wet season, 192,095 farmers cultivating various crops, including rice, maize, sorghum/millet, soybeans, and cassava, were supported across all 37 states, including the Federal Capital Territory.

Future Plans

Looking ahead, the government plans to support 250,000 wheat farmers across wheat-producing states with subsidized agricultural inputs, aiming to cultivate 250,000 hectares and produce 750,000 metric tons of wheat. This effort is expected to reduce dependence on wheat importation and increase domestic consumption. Furthermore, 150,000 rice farmers will be supported under the second phase of the program, covering all 37 states, including FCT, with an expected output of 450,000 metric tons.

Cross River State is taking the lead in wheat production among 16 states in Nigeria, with over 3,000 wheat farmers selected for support to boost their output. This impressive commitment has caught the attention of the federal government, leading to a partnership with Cross River to launch the maiden wheat production project as part of the 2024/2025 dry season initiative.

Highlights of the Project:

Support for Wheat Farmers: 250,000 wheat farmers will receive subsidized inputs to cultivate 250,000 hectares of land.

Targeted Output: An estimated 750,000 metric tons of wheat is expected to be produced, reinforcing the nation's food reserves and decreasing import dependency.

Increased Local Consumption: The project aims to increase local consumption of wheat, promoting food security and self-sufficiency.

The African Development Bank (AfDB) has also shown support for Nigeria's agricultural sector, providing a $163 million loan to scale up wheat production. This investment is part of the AfDB's “Feed Africa” program, which aims to transform African agriculture by leveraging private sector investment, improving infrastructure, and introducing climate-smart agricultural systems.

Nigeria's National Agricultural Growth Support Scheme-Agro Pocket (NAGS-AP) project is gearing up to support 150,000 rice farmers across all 37 states, including the Federal Capital Territory, in its second phase. This initiative aims to produce an impressive 450,000 metric tons of rice.

Project Overview

The NAGS-AP project is divided into two phases, focusing on providing high-quality seeds and grains to farmers. Buba Ishaku, National Project Coordinator for NAGS-AP, highlighted the project's emphasis on empowering farmers with essential resources.

Stakeholder Collaboration

The flag-off event brought together key stakeholders, including international development partners, state commissioners of agriculture, and state permanent secretaries. This collaborative effort underscores the commitment to achieving national food security.

Nigeria's Agricultural Sector

Nigeria's agricultural sector is vital to the country's economy, accounting for 22.35% of the total Gross Domestic Product. However, challenges such as poor land tenure systems, low irrigation levels, and climate change impact agricultural productivity.

Initiatives and Programs

To address these challenges, the government has implemented initiatives like the Agriculture Promotion Policy, Nigeria-Africa Trade and Investment Promotion Programme, and the Presidential Economic Diversification Initiative. These efforts aim to increase agricultural productivity, promote sustainable management of natural resources, and enhance food security.