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Oyo, Imo, Six Others To Receive $540m AfDB Funds For SAPZs

Published

2 years ago

February 5, 2024

Oyo, Cross River and Imo are among seven states and the Federal Capital Territory to receive the first tranche of disbursements of $540m from the African Development Bank to develop Special Agro-Industrial Processing Zones.

Prof. Banji Oyelaran-Oyeyinka, Senior Special Adviser on Industrialisation to the AfDB President, Akinwumi Adesina, disclosed this on Monday when a delegation of the bank and that of the United Nations Industrial Development Organisation presented their separate reports on the status of projects being executed in Nigeria to Vice President Kashim Shettima at the Presidential Villa, Abuja.

Shettima’s Senior Special Assistant on Media and Communications, Stanley Nkwocha, revealed details of Monday’s discourse in a statement titled, ‘AfDB set to begin disbursement of $540m SAPZs fund.’

Monday’s development comes nearly eight months after the AfDB President, Adesina, first apprised President Bola Tinubu of a $520m investment in the zones.

At a two-day summit on A New Global Financing Pact in Paris in late June 2023, Adesina had assured Tinubu that the bank would support the new administration’s economic policies in Nigeria, placing the people first in development targets.

Speaking on Monday, Oyelaran-Oyeyinka said the SAPZs, which plans to turn Nigeria’s rural landscape into economic zones of prosperity, is meant to “support inclusive and sustainable agro-industrial development in Nigeria.”

“The phase one of the project is at the point of disbursement. Kaduna, Oyo and Cross River States are all in the process of receiving disbursements and we hope that the other states can speed up their documentation so that we can fast-track these states.

“We raised $540m in catalytic funding and expect every state to find a partner to bring equity and join up with them. It is a government-enabled project but private-sector driven,” he explained further.

He also clarified that the first phase of SAPZs is being implemented in seven states: Cross River, Imo, Kaduna, Kano, Kwara, Ogun, Oyo and the Federal Capital Territory.

“Ogun state found a partner for the project and decided not to take the loan. We are going to distribute the loan to the other states.

“The next thing is preparation for phase two with 27 states. The demand is enormous, but we must prioritise those who move fast.

“We have set up eligibility criteria for the states and to rank them. We expect them to have a feasibility report, environmental impact study and a commitment to counterpart funding,” Oyelaran-Oyeyinka added.

On his part, VP Shettima called for immediate action, saying it is time for the government and its development partners to walk the talk.

The three states will benefit from phase one of the development of processing zones, including Oyo, Kaduna and Cross River, while others will get theirs as soon as they conclude documentation.

In another report on the visit to the Ajaokuta Steel Company Limited, as earlier commissioned by the VP, the Head of Investment and Technology Promotion Office at the UNIDO, Abimbola Wycliffe, told VP Shettima that the recovery plan for the company would include revitalising through rehabilitation, modernisation and expansion.

She said, “Single-phase turnaround for the entire plant is challenging due to heavy investments and a prolonged revenue generation timeline. Convert the integrated steel plant into strategic business units to serve as profit centers.

“Conduct opportunity studies for each SBU, focusing on incremental investments, raw material availability, labor, utilities, and market demand. Prioritize SBUs with lower investments and quicker positive cash flows (the low-hanging fruits)”.

Wycliffe called for the reinvestment of profits from each SBU in ASC to reduce the burden of incremental investment on the Nigerian economy, even as she recommended the enhancement of foreign exchange earnings and contribution to local economic development in the country

In his response, VP Shettima called for immediate action, saying all hands must be on deck to ensure that the visions of President Bola Ahmed Tinubu are delivered to the Nigerian people.

He asserted, “We have passed the age of talking; we must walk the talk. We can talk from now till eternity and it does not mean anything if there is no action and; hence, we must make this work. We just must.

“We have not seen beyond the depth of our pockets; what comes to us is more important than what comes to the generality of the people. Things must change.

“I read a book on how Korea transformed itself with no natural resources, how they started producing steel against all odds, how they went into shipbuilding, and how Hyundai, Daewoo, Samsung and Kia came about. I believe that when there is a will, there is always a way. We have to walk the talk,” the Vice President stated.

News

W’Cup Qualifiers: Super Eagles Edge Rwanda 1-0 To Revive Qualification Hopes

Published

9 hours ago

September 6, 2025

Editor

In a high-stakes 2026 FIFA World Cup qualifier at the Godswill Akpabio International Stadium in Uyo, Nigeria secured a vital 1–0 victory over Rwanda, breathing new life into their qualification hopes.

The only goal of the match came in the 51st minute when Tolu Arokodare capitalized on a loose ball in the penalty area, slotting it past Rwanda’s goalkeeper to give Nigeria a crucial lead.

The first half ended goalless, with both teams cautious in their approach. Nigeria’s defense, marshalled by Calvin Bassey, held firm despite Rwanda’s tactical shifts in the second half.

News

NCDC Alerts Nigeria As DR Congo Declares Ebola Outbreak

Published

9 hours ago

September 6, 2025

Editor

The Nigeria Centre for Disease Control and Prevention (NCDC) has issued a public health advisory following the confirmation of a new Ebola Virus Disease (EVD) outbreak in the Democratic Republic of Congo (DRC).

As of September 4, 2025, the DRC has reported 28 suspected cases and 15 deaths, including four health workers, in the Kasai Province.

The Director-General of NCDC, Dr. Jide Idris, said the agency will continue to monitor the regional and global situations as there are no cases of Ebola virus disease in Nigeria, as of now.

However, the NCDC is taking proactive measures to prevent the spread of the disease, and it is working closely with relevant Ministries, Departments, Agencies, and Partners to strengthen preparedness and response measures in Nigeria.

Idris urged Nigerians to practice good hand hygiene by washing their hands regularly with soap under running water or using hand sanitisers. He also advised Nigerians to avoid physical contact with anyone showing symptoms of infection or an unknown diagnosis.

Additionally, individuals should handle animals with gloves and protective clothing, and cook animal products thoroughly to reduce the risk of wildlife-to-human transmission.

Furthermore, people should avoid direct contact with the blood, saliva, vomit, urine, and other bodily fluids of suspected or confirmed EVD cases.

The NCDC advises Nigerian citizens and residents to avoid all but essential travel to countries with confirmed Ebola cases. Those with recent travel history to affected areas who experience symptoms should promptly call the NCDC hotline (6232) or their State Ministry of Health hotline for assessment and testing.

They should also shelter-in-place to avoid further spread through shared transport systems and await dedicated responders for assessment and possible transport to a treatment centre.

The NCDC is strengthening surveillance across the country, including borders and airports, and enhancing laboratory capacities for quick testing of suspected cases.

Idris assured that the agency will continue to provide periodic updates on the situation as the Ebola outbreak in the DRC is caused by the Zaire strain, with a mortality rate estimated at 57%.

The World Health Organisation (WHO) has deployed experts to support response efforts, and the DRC has activated its Public Health Emergency Operations Centre.

News

5% Fuel Surcharge: What Nigerians Should Know

Published

10 hours ago

September 6, 2025

Editor

File Copy: Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele

Confusion has erupted online over a supposed 5% fuel surcharge under Nigeria’s new tax laws, with many fearing a sudden increase in fuel prices.

The chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, on Saturday through a post on X, clarified what is fact and what is fiction.

The controversy arises from the recent passage of the Nigeria Tax Act, 2025, which consolidates and harmonises previous tax laws.

Some social media posts suggested that President Bola Tinubu’s administration had introduced a new surcharge on fuel, sparking public concern.

Oyedele clarified: “The charge is not a new tax introduced by the current administration. The provision already exists under the Federal Roads Maintenance Agency (Amendment) Act, 2007. Its restatement in the new Tax Act is for harmonisation and transparency rather than immediate implementation.”

According to Oyedele, the surcharge is meant to fund road infrastructure, an area that has historically suffered from underfunding.

Over the years, Nigeria’s road network has faced chronic maintenance challenges, resulting in potholes, travel delays, and higher vehicle operating costs.

Oyedele further noted that the surcharge is intended to create a dedicated, predictable funding source for road construction and maintenance.

Oyedele addressed key questions raised by citizens:

Will the surcharge start automatically in January 2026?

No. It will only take effect when the Minister of Finance issues an order published in the Official Gazette:

“The surcharge does not take effect automatically with the new tax laws. It will only commence when the Minister of Finance issues an order published in the Official Gazette as stated under Chapter 7 of the Nigeria Tax Act, 2025. This safeguard ensures careful consideration of timing and economic conditions before implementation,” Oyedele stated.

Does it apply to all fuels?

No. Household energy products such as kerosene, LPG, and CNG are exempt. Clean and renewable energy products are also excluded to support Nigeria’s energy transition agenda.

Why maintain the surcharge amid economic hardship?

Oyedele explained that the fund is meant as a dedicated mechanism for road maintenance:

He said, “The surcharge is designed as a dedicated fund for road infrastructure and maintenance. If implemented effectively, it will provide safer travel conditions, reduce travel time and cost, lower logistics costs and vehicle maintenance expenses, which will benefit the wider economy. This practice is virtually universal with over 150 countries imposing various charges ranging between 20% to 80% of fuel products to guarantee regular investment in road infrastructure.”

Could subsidy savings cover road funding instead?

The Chairman of theCommittee on Fiscal Policy and Tax Reforms said: “While subsidy savings will provide some funding, they are insufficient to meet Nigeria’s huge and recurring road infrastructure needs among other public finance needs. A dedicated fund ensures reliable and predictable financing for roads, complementing the budget and ensuring roads are not left underfunded.”

Does this contradict the tax reform objective of easing citizens’ burden?

Oyedele reassured: “The reforms have already reduced multiple taxes and removed or suspended several charges that directly affect households and small businesses, such as VAT on fuel, excise tax on telecoms, and the cybersecurity levy. By harmonising earmarked taxes, government is reducing duplication and ensuring a more efficient tax system.”

Why not remove the surcharge entirely?

He clarified: “Yes, the surcharge has been removed from the FERMA Act and incorporated into the new tax laws which are designed to provide a forward-looking legal framework for Nigeria. Keeping this provision in place within a harmonised legal framework ensures Nigeria is prepared to address critical challenges, such as sustainable road financing and even climate change impacts. It is not about immediate implementation, but to ensure the law provides a clear and effective framework for when it becomes necessary in the future.”

In summary, Oyedele stressed that the surcharge is not new, not immediate, and selectively applied. Its inclusion in the law is about transparency, preparedness, and sustainable funding for Nigeria’s roads, and it aims to address long-standing gaps in infrastructure financing.
(PUNCH)