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AfDB Dissatisfied With $210m Nigeria Agro-Industrial Zones Project
The African Development Bank has expressed dissatisfaction over the slow progress of the first phase of Nigeria’s Special Agro-Industrial Processing Zones project, raising concerns about the disbursement of the $210m loan allocated for the initiative.
According to the bank’s latest Implementation Progress and Results Report dated January 30, 2025, obtained from its website by The Tide yesterday, 98.39 per cent of the total loan remains undisbursed more than two years after the project was approved.
The SAPZS-I project was approved in December 2021 as part of efforts to drive agro-industrial development in Nigeria by establishing processing hubs, supporting infrastructure, and improving agricultural productivity.
However, the project has suffered significant delays, leading to warnings from the AfDB and the introduction of remedial measures to hasten implementation.
The report read, “Procurement of supervision consultants for the DBO contractors is at RFP stage in the case of Kaduna State and REOI stage for Oyo, Imo and Cross River State Design Build and Operate bidding documents have been cleared for four states of Kaduna, Cross River, Oyo and Ogun states and Kaduna has already advertised its DBO.
“All these will result in improved implementation, disbursement, and rating in the year 2025. However overall performance status from the time of project approval to date is relatively slow, especially with respect to project disbursement.”
It reveals that of the total loan amount of $210m, only 1.61 per cent has been disbursed as of December 2024
The ADB was to provide $160m of the total loan, while the Africa Growing Together Fund would provide an additional $50m.
Further checks by The Tide showed that AGTF is a $2bn facility sponsored by the People’s Bank of China and administered by the AfDB.
Despite the availability of these funds, the pace of disbursement has been sluggish.
Further breakdown of the figures shows that only 1.93 per cent of the AfDB’s portion of the loan has been disbursed, leaving 98.07 per cent undisbursed.
Similarly, the AGTF’s portion has recorded a disbursement rate of just 0.58 per cent, with 99.42 per cent of the funds yet to be utilised.
The bank identified administrative inefficiencies, weak capacity among project staff, and delays in procurement processes as key factors hindering the disbursement and implementation of the initiative.
The AfDB has also raised concerns about the slow progress in Imo State, which has not commenced any major activities under the project.
Unlike Kaduna, Cross River, Oyo, and Ogun states, which have made some progress, Imo has lagged.
The bank has formally warned the Imo State Government to begin implementation immediately or risk losing its share of the loan.
The report states that the bank has informed “the Government of Imo State on the need to start activities or the bank will recourse to a cancellation of the loan.”
Meanwhile, the bank has also directed the Ogun State Government to provide an acceptable Service Level Agreement to ensure continued funding.
The Tide learned that a service level agreement defines the level of service expected from a vendor, laying out metrics by which service is measured and remedies should service levels not be achieved.
It is often a critical part of any technology vendor contract.
Despite the project’s potential to drive agro-industrial growth, the bank noted that weak capacity among the staff managing the initiative has posed a major challenge.
The National Project Coordinating Unit and Participating State Implementing Units were found to lack the expertise needed to efficiently manage financial resources, procurement processes, and environmental and social safeguards.
The report highlights that, as part of efforts to address these shortcomings, the bank has deployed two experienced consultants to support project staff and ensure they meet the bank’s fiduciary requirements.
Due to the weak capacity at the PSIUs and the NPCU, the bank noted that it is providing “handholding support to both National Coordinating Office at the Federal level and PSIUs in terms of financial management, procurement processes, Environmental and Social Safeguards etc; reinforced by regular technical workshops on Bank fiduciary requirements.
“The Bank has also provided additional two experienced consultants to backstop and hand hold the project staff on the implementation of project activities.”
Rivers State Head of Service, Dr (Mrs) Inyingi Brown, has called on rural communities in the State to embrace the Rural Access and Agricultural marketing project (RAAMP) with a view to improving their living conditions.
This follows the ongoing sensitization campaign by the State Project Implementation Unit (SPIU) visits to Degema, Abonnema, Afam headquarters of Degema, Akuku Toru and Oyigbo Etche and Omuma local government areas respectively.
Dr Brown who was represented by the Deputy Director, Special Duties in her office, Mrs Dein Akpanah, said RAAMP was initiated by the Federal Government and World Bank to economically empower rural dwellers.s
She said the World Bank understands the plights of rural farmers and traders in the State, and therefore came up with the programme to address them.
According to her, RAAMP will improve the conditions of farmers, traders and fishermen, and therefore, behoves on every rural communities in the State to embrace the programme.
The Head of Service also said the programme would support the youths to be gainfully employed while bridges and roads will be built to link farms and fishing settlements.
Also speaking, the State project coordinator, Mr Joshua Kpakol, said the programme has the potential of creating millionaires among farmers and fishermen in the State.
Kpakol who was represented by Engr. Sam Tombari, said RAAMP would help farmers and fishermen to preserve their produce.
According to him, the project will build cold rooms and Silos for preservation of crops and fishes while access roads will also be created to link farmers and fishermen to the market.
He, however, warned them against any act that will lead to the suspension of the projects by the World Bank.
Kpakol particularly warned against acts such as kidnapping, marching ground, gender based violence and child labour, adding that such acts if they occur may lead to the cancellation of the project by the World Bank.
During the visit to Oyigbo local government area, Mr Joshua Kpakol, said the team was there to let them know how they will benefit from the Raamp.
The coordinator who was personally at Oyigbo said the World Bank introduced the project to check food insecurity in the State.
He said already 19 states in Nigeria are already benefitting from the project and called on them to embrace the project.
Meanwhile, stakeholders in the three local government areas have commended the World Bank for including their areas in the project.
They, however, complained over the incessant attacks by pirates on their waterways.
At Degema, King Agolia of Ke kingdom said land was a major problem in the kingdom.
King Agolia represented by High Chief Alpheus Damiebi said many indigenes of the kingdom are willing to go into farming but are handicapped by lack of land.
Also at Degema, the representative of the Omu Onyam Ekeim of Usokun Degema kingdom, Osoabo Isaac, said Degema has embraced the programme but needed more information on the implementation of the programme.
Similarly, while High Chief Precious Abadi advised that the project should not be narrowed to only crop farming, a community women leader, Mrs Orikinge Eremabo Otto, called for the construction of cold rooms in all fishing settlements in the area.
At Abonnema, Mr Diamond Kio linked the problem of the area to incessant piracy along waterways.
He also expressed fears over the possibility of the project being hijacked by politicians.
Also at Abonnema, a stakeholder, Ikiriko Kelvin, called on the World Bank to design an agricultural project that will suit the riverine environment, while at Oyigbo, HRH Eze Boniface Akawo expressed satisfaction with the project.
John Bibor
The political mudslinging between the Senate leadership and Senator Natasha Akpoti-Uduaghan continued yesterday as the Senate named Senator Aniekan Bassey as the new Chairman of the Committee on Diaspora and Non-Governmental Organisations.
Senate President, Godswill Akpabio, announced the appointment during yesterday’s plenary, confirming Bassey’s replacement of Senator Natasha Akpoti-Uduaghan, who is currently on suspension.
Akpoti-Uduaghan was reassigned to the Diaspora and NGOs Committee in February after she was removed as Chair of the Senate Committee on Local Content during a minor reshuffle.
Bassey is the senator representing Akwa Ibom North-East Senatorial District.
Although no reason was given for her removal yesterday, the change is believed to be connected to her unresolved suspension.
In May, Justice Binta Nyako of the Federal High Court ordered her reinstatement and directed her to tender an apology to the Senate.
However, the Senate has insisted it has not received a certified true copy of the court judgment.
Akpoti-Uduaghan who represents Kogi Central, has yet to resume her legislative duties despite a recent court ruling that voided her suspension.
In a televised interview on Tuesday, Akpoti-Uduaghan said she was awaiting the Certified True Copy of the judgment before officially returning to plenary, citing legal advice and respect for institutional process.
Although the Federal High Court described her suspension as “excessive and unconstitutional”, a legal opinion dated July 5 and attributed to the Senate’s counsel, Paul Daudu (SAN), argued that the ruling lacked any binding directive to enforce her reinstatement.
Akpoti-Uduaghan, one of only three female senators in the current assembly, said the continued delay in allowing her return was not only a denial of her mandate but also a blow to democratic representation.
“By keeping me out of the chambers, the Senate is not just silencing Kogi Central, it’s denying Nigerian women and children representation. We are only three female senators now, down from eight,” she said.