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Nigeria’s New Agro-Industrial Policy: Can It Pave Way for Africa’s Food Security Revolution?

Nigeria’s New Agro-Industrial Policy: Can It Pave Way for Africa’s Food Security Revolution?
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With its annual food import bill exceeding $10 billion and agricultural export earnings falling below $400 million, Nigeria is turning to a reformed agro-industrial development framework to attract $4.4 billion in investment, strengthen domestic processing capacity, and narrow the trade gap.
Nigeria is advancing efforts to transform its agricultural sector by expanding processing capacity and reducing post-harvest losses, which SAPZ officials estimate affect 30 to 60 percent of farm produce and cost the economy up to $10 billion annually. The Special Agro-Industrial Processing Zones (SAPZ) program seeks to unlock the sector's potential by establishing processing hubs near major farming areas, improving access to storage, transport, and electricity, and connecting smallholder farmers with commercial markets. Its newly validated draft policy aims to harmonize agricultural, industrial, and investment regulations to encourage private-sector participation. Already under implementation across seven states and the Federal Capital Territory, the program brings together government institutions and development finance partners to promote local value addition, create jobs, and raise rural incomes.
In an interview with African Currents, Nigerian agricultural development practitioner Donald Yakumbur Terseer highlighted how the country's new initiative could support a broader shift towards value-added agriculture. He called for stronger farmer organizations, transparent market arrangements, and improved infrastructure to connect smallholder producers with processing facilities and commercial buyers.

"The core problem in Nigeria is that it has long produced agricultural commodities without building enough infrastructure [...]. The program is in the first phase, and the first phase combines agro-industrial hubs and, of course, agricultural transformation centers. We have infrastructure, productivity supports, and, of course, enterprise development policy reforms and private sector participation. Now, what is different about SAPZ as a program? It's its spatial and integrated model. Instead of supporting a production isolation, the program attempts to, of course, locate processing closer to production. We have production clusters, and of course it will deliberately connect farmers, aggregation centers, infrastructure, processors, finance, and markets to connect them together in very close proximities [...]. It is important that we note four things. First, farmers must be organized into commercially viable producer groups or cooperatives so that the processors can source the volumes efficiently. Secondly, there must be transparent pricing formulas and, of course, delivery schedules before production. The third one is that farmers need access to finance linked to actual market demand. The fourth on my list would be farmers upgrading; it must go beyond increasing yields, or it should include record-keeping, which is done in most of the development programs," Terseer said.

For the full perspective and further insights from our guest, tune in to this episode of African Currents, a podcast by Sputnik Africa.
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