The African Development Bank has expressed dissatisfaction over the slow progress of the first phase of Nigeria\u2019s Special Agro-Industrial Processing Zones project, raising concerns about the disbursement of the $210m loan allocated for the initiative.
\nAccording to the bank\u2019s 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.
\nThe 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.
\nHowever, the project has suffered significant delays, leading to warnings from the AfDB and the introduction of remedial measures to hasten implementation.
\nThe report read, \u201cProcurement 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.
\n\u201cAll 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.\u201d
\nIt reveals that of the total loan amount of $210m, only 1.61 per cent has been disbursed as of December 2024
\nThe ADB was to provide $160m of the total loan, while the Africa Growing Together Fund would provide an additional $50m.
\nFurther checks by The Tide showed that AGTF is a $2bn facility sponsored by the People\u2019s Bank of China and administered by the AfDB.
\nDespite the availability of these funds, the pace of disbursement has been sluggish.
\nFurther breakdown of the figures shows that only 1.93 per cent of the AfDB\u2019s portion of the loan has been disbursed, leaving 98.07 per cent undisbursed.
\nSimilarly, the AGTF\u2019s portion has recorded a disbursement rate of just 0.58 per cent, with 99.42 per cent of the funds yet to be utilised.
\nThe 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.
\nThe AfDB has also raised concerns about the slow progress in Imo State, which has not commenced any major activities under the project.
\nUnlike Kaduna, Cross River, Oyo, and Ogun states, which have made some progress, Imo has lagged.
\nThe bank has formally warned the Imo State Government to begin implementation immediately or risk losing its share of the loan.
\nThe report states that the bank has informed \u201cthe Government of Imo State on the need to start activities or the bank will recourse to a cancellation of the loan.\u201d
\nMeanwhile, the bank has also directed the Ogun State Government to provide an acceptable Service Level Agreement to ensure continued funding.
\nThe 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.
\nIt is often a critical part of any technology vendor contract.
\nDespite the project\u2019s potential to drive agro-industrial growth, the bank noted that weak capacity among the staff managing the initiative has posed a major challenge.
\nThe 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.
\nThe 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\u2019s fiduciary requirements.
\nDue to the weak capacity at the PSIUs and the NPCU, the bank noted that it is providing \u201chandholding 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.
\n\u201cThe Bank has also provided additional two experienced consultants to backstop and hand hold the project staff on the implementation of project activities.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The African Development Bank has expressed dissatisfaction over the slow progress of the first phase of Nigeria\u2019s Special Agro-Industrial Processing Zones project, raising concerns about the disbursement of the $210m loan allocated for the initiative. According to the bank\u2019s latest Implementation Progress and Results Report dated January 30, 2025, obtained from its website by The […]<\/p>\n","protected":false},"author":1,"featured_media":341698,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[],"yoast_head":"\n