The African Development Bank (AfDB) has described the overall performance of the first phase of Nigeria’s $210 million special agro-industrial processing zone (SAPZ) programme as “problematic”.

The lender’s assessment was detailed in the AfDB project implementation progress and results report published on Friday. The report revealed that the first phase of the project — coded P-NG-AAA-002 — has yet to deliver on its ambitious promise.

The project was launched with a $210 million loan package that includes $160 million from the AfDB and $50 million from the Africa Growing Together Fund.

The SAPZ initiative is designed to create state-of-the-art agro-industrial hubs across seven key Nigerian states. These states are Ogun, Oyo, Imo, Cross River, Kano, Kaduna and Kwara. The initiative also includes the Federal Capital Territory.

Summarily, the project seeks to boost productivity, support crop and livestock development, reduce the nation’s reliance on imported food and create jobs in rural communities.

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DELAYS AND IMPLEMENTATION CHALLENGES

Despite these high aspirations, the report states that progress has been sluggish, especially due to delays in fund disbursement and procurement.

Also, the process for hiring supervision consultants, a critical step in managing the Design, Build and Operate contracts, has stalled in several states.

While Kaduna has advanced to the Request for Proposal stage, other states such as Oyo, Imo and Cross River remain in the early Request for Expression of Interest phase.

Most importantly, even though bidding documents have been cleared in Kaduna, Cross River, Oyo and Ogun, the expected financial flow has not materialised.

Furthermore, the report points to capacity challenges within Nigerian subnationals, especially project implementation units and the national project coordination unit.

These teams, responsible for vital tasks like financial management, procurement, and ensuring environmental and social safeguards, have been unable to meet the project’s demands.

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AfDB ISSUES WARNINGS TO UNDERPERFORMING ENTITIES

The AfDB has cautioned that continued inaction could have serious consequences. For instance, Imo has been warned that delays might result in the cancellation of its loan share, and Ogun must revise its Service Level Agreement by March 31 to secure its funding.

For many Nigerians, the SAPZ project represents a potential for economic inclusion where agricultural areas in rural environments could become industrial hubs.

In December, the AfDB announced the mobilisation of $2.2 billion in capital for the SAPZ Phase Two project, signalling renewed commitment. However, it was done with the hope that the obstacles of the first phase could be surmounted.