The African Development Bank (AfDB) has greenlit a significant financial initiative aimed at addressing Nigeria’s pressing food production needs. AfDB President Akinwumi Adesina announced the approval of a $134 million emergency food production plan during an interview with journalists in Lagos.
This move comes in response to the alarming food scarcity crisis in Nigeria, which has triggered protests and attacks on grain warehouses in several states. The recent removal of fuel subsidies and exchange rate adjustments by the government have exacerbated hardships, with inflation soaring to nearly 30%.
Adesina outlined AfDB’s commitment to supporting Nigeria through this challenging period, emphasizing various agricultural initiatives aimed at boosting production. These initiatives are projected to yield approximately five million metric tons of wheat, rice, cassava, and maize this year.
The AfDB chief stressed the importance of addressing food inflation, which constitutes a significant portion of Nigeria’s overall inflation rate. He advocated for structural measures to enhance food production, including a return to the electronic wallet system for distributing seeds and fertilizers directly to farmers.
Furthermore, Adesina highlighted the need for low-interest concessionary financing to address Nigeria’s economic challenges, particularly in light of forex shortages. AfDB is planning a $1.7 billion economic and budget support loan for the country, along with a $1 billion agro-industrial program spanning 28 states.
Additionally, AfDB is set to launch a $1 billion special agro-industrial processes program aimed at enhancing agricultural productivity and competitiveness. Adesina emphasized the significance of these structural interventions in driving Nigeria’s agricultural sector forward.
Overall, AfDB’s initiatives underscore a concerted effort to support Nigeria’s economic recovery and agricultural development amidst prevailing challenges.