Government, private sector partner on SPCZ implementation

To reduce post-harvest losses, create jobs and develop the rural areas, the government in partnership with the private sector would be implementing the Staple Crops Processing Zone (SCPZ) established by the Federal Ministry of Agriculture and Rural Development.

The SPCZ scheme is aimed at setting up of processing businesses in areas where certain crops are produced abundantly, to process and develop these crops along their value chains. These would ensure ready market for farmers’ crops, motivate them to produce more, while additional jobs would be created from establishment of the factories and other business activities generated from the development of the value chains leading to rural development.

In realisation of the business and development opportunities that these zones would bring and to achieve these objectives, state governors and private sector industry leaders declared their support and readiness to implement the SCPZ scheme at the recently concluded World Economic Forum held in Abuja.

The processing zones are located within 14 states or corridors to provide services and interventions at every step of the value chain by linking players from inputs to end markets to streamline the process for investors. The 14 states and corridors are Anambra/Enugu, Bayelsa, Benue, Borno, Cross River, Kano, Kogi/Kwara, Lagos, Nasarawa, Niger, Ogun, Rivers, Taraba, and Kebbi/Sokoto.

Patrick Kormawa, country director for UNIDO, Abuja, notes that Nigeria is reputed to be the foremost country in production of cassava, yam and food sorghum worldwide, at 54 million metric tons (MMT), 38 MMT and 6.9 MMT, respectively, while the country places second and third globally in citrus and groundnut production. But, according to him, processing remains rudimentary, while post-harvest losses for various commodities remain high, and these are associated with inability to meet market requirements.

To overcome the challenges to agro-processing, he says “provision of support for site/estate/infrastructure has been identified as a key intervention that requires urgency. For the initial take-off, master plans have been completed for seven of the Model SCPZ sites/corridors across five value chains, with further sites/corridors and value chains to be added.”

Dansa Foods, one of the investing private sector companies, is said to have pledged 36 million Euros (about N7.4bn) to build the largest high-energy sorghum processing plant in Nigeria to sell to the World Food Programme and school feeding programmes and regular consumer base.

Under the partnership arrangement between the federal and state governments, the various state governments would provide some support. The Niger state government for instance has prioritised infrastructure investment, actively seeking Public-Private Partnerships (PPP) for the SCPZ in that state, with the state planing to invest $103 million (N17.2bn) in zone development in addition to any investments through partnerships with the private sector.

Lagos State government has made arrangements for public and private sectors stakeholders for the Ikorodu-Epe corridor SCPZ, with collaborations on projects related to zone development. In Kogi, the Alape SCPZ largely focuses on providing a conducive business environment for the production and processing of cassava and additional crops.

To overcome key investment challenges in all the zones, attention was focused on access to land, infrastructure, and real estate, subsidies, fiscal incentives, and affordable financing. Akinwunmi Adesina, minister of agriculture and rural development, told participants at the recently concluded World Economic Forum in Abuja that Nigeria had transformed into an economy where agribusiness would dictate the pace of economic activities.

Also, governors and representatives of Kogi, Kano and Enugu states also pledged their support to foreign and local investors who choose to invest in their states. They declared that they already had structures in place to address gaps that might hinder the smooth take-off and operations of the SCPZs.

Representatives of global agribusiness groups, banks, executive leadership of the Nigerian Agribusiness Group, international organisations and NGOs, including World Bank, United Nations Industrial Development Organisation (UNIDO), United States Agency for International Development (USAID), UK Department For International Development (DFID), and Africa Development Bank (AfDB), all participated at the SCPZ side event.

The minister urged foreign and local investors to consider the current scientific best practices, availability of large, cheap workforce, fresh water and good climatic conditions as reasons to support and invest in agriculture in Nigeria.

OLUYINKA ALAWODE