Nigeria, IFAD, sign $158m agreement to boost agricultural sector’s value chain

The Nigerian Government on Wednesday signed a $158 million financing agreement with the International Fund for Agricultural Development (IFAD), for the Value Chain Programme in Northern Nigeria (VCN).

Minister of Agriculture and Food Security, Abubakar Kyari, signed on behalf of Nigeria while the IFAD’s Regional Director for West and Central Africa, Bernard Hien, signed on behalf of the international financial institution.

The $158.15 million project is designed to transform agribusiness in nine northern states of Borno, Yobe, Jigawa, Bauchi, Kano, Katsina, Kebbi, Sokoto and Zamfara, over 8 years, targeting about 3.1 million household members.

The initiative is co-funded by the IFAD, the French Development Agency (AFD), and the Government of Nigeria.

The eight-year initiative, validated on March 21, 2024, was conceived following Vice President Kashim Shettima’s request during United Nations Forum on Sustainability Standards (UNFSS) stocktaking in Rome on July 24, 2023, that IFAD should scale-up its portfolio in Nigeria and mobilize additional partners and donors to support the agri-food transformation and food security of the Renewed Hope Agenda.

It is expected to sustainably reduce poverty, enhance nutrition and better resilience of rural and most vulnerable populations in the nine northern states, which include Borno, Bauchi, Kano, Katsina, Kebbi, Jigawa, Sokoto, Yobe and Zamfara.

Speaking during the signing ceremony of the financing agreement for the VCN project at the Presidential Villa, Abuja, Vice President Shettima described the initiative as a product of critical thinking about the economic reality of the northern region.

According to him, it is a fulfilment of the promise made by the administration of President Bola Tinubu to reduce poverty in Nigeria, restore dignity to the nation’s farmers, and ensure food security.

“It is a declaration of faith in the North, not as a region of deficits, but as a place of abundance. It also invites us to play our part in fulfilling the promise to reduce poverty, nourish our people, and restore dignity to farming families across Bauchi, Borno, Jigawa, Katsina, Kebbi, Sokoto, Kano, Yobe, and Zamfara.

“What has brought us together today is an investment of $158.15 million, co-financed by the International Fund for Agricultural Development (IFAD), the Agence Française de Développement (AFD), the Federal Government of Nigeria, and other stakeholders.

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Recalling that the administration recently commenced foundation laying for the construction of Special Agro-Industrial Processing Zones (SAPZS) across Nigeria, the VP said the VCN programme will feed into the SAPZS, serving as “a steady pipeline of raw materials and ensuring our processors no longer grope for quality inputs.

“This synergy will shift us from exporting raw produce to exporting value-added goods—creating jobs, wealth, and industrial stability,” he added.

Noting that the federal government will deploy digital tools to track every step, “from farmer registration to market access, from input distribution to yield analysis”, the VP assured that “in regions where migration and insecurity are fuelled by joblessness, the VCN provides vehicles for enterprise, income, and dignity.”

Minister of Agriculture and Food Security, Abubakar Kyari noted that the signing of the financing agreement represents a significant milestone in the efforts to transform the agricultural landscape in Nigeria under the Renewed Hope Agenda of the Tinubu administration.

He noted that the participation of the nine states and the presence of other critical stakeholders underscore the commitment of the sub-nationals and the federal government in fostering inclusivity in agricultural development and economic empowerment.

The Minister expressed confidence that the VCN will deliver programmes and projects that will improve agricultural productivity and the overall well-being of smallholder farmers, farmer groups, and women across the region.

In separate remarks, the Governors of Borno, Prof. Babagana Zulum; Jigawa, Alhaji Umar Namadi, and Katsina, Alhaji Dikko Radda, applauded the leadership provided by President Tinubu and Vice President Shettima in the implementation of the VCN programme and other schemes across northern Nigeria.

They pledged their commitment and support in the actualisation of the objectives of the various components of the programme and urged the implementers to review the design and timeline for implementation to enable states to maximise the benefits therein.

In her remarks, the Country Director of IFAD, Dede Ekoue added that expected results from the interventions include the creation of over 30,000 jobs and entrepreneurial opportunities for youths, women and vulnerable groups and the construction of over 229km of roads across the region to enhance market access, among others.

The high point of the occasion was the signing of the agreement for the Joint Roadmap for Accelerated Start-up between the federal government and IFAD.

By: Babajide Okeowo

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