Abuja, July 11, 2023:The African Development Bank (AfDB) says domestic resource mobilisation is key to national development in Nigeria.
The AfDB President, Dr Akinwumi Adesina, said this at the 2nd Edition of the Nigeria Employers’ Summit on Monday in Abuja.
The theme of the Summit is, “Trade and Non-Oil: Changing the Narratives for Rapid National Development.
Adesina, represented by Mr Lamin Barrow, Director-General, Nigeria Country Department of AfDB said Nigeria’s revenue to Gross Domestic Product (GDP) ratio, at about eight per cent, was among the lowest globally.
He said Nigeria is currently facing huge fiscal deficits, estimated at six per cent of GDP , attributable to high public expenditures amidst dwindling revenues from crude oil exports.
The AfDB boss listed other measures that should be prioritised to include improving tax collection and tax administration, plugging leakages in tax collection and enhancing the efficiency of public investment programs.
He also noted that the agriculture sector’s contribution to the GDP remained important and provided a sure route to sustainable revenue generation and driving transformation of the economy.
“’However, labour productivity in the sector measured by agriculture value added per worker, has remained stagnant around 5,500 dollars.
“’Nigeria remains a net importer of food in spite of generous endowment of arable land and a favorable climate in many parts of the country.
”Between 2010 and 2020, the annual food import bill averaged 6.4 billion dollars while food exports averaged 1.2 billion dollars over the same period.
”One way to accelerate the development of agro-industrial value chains is by unlocking the opportunities in the sector.
” Including by developing and de-risking of agricultural value chains and attracting private sector food and agribusiness firms into rural areas,” he said.
According to Adesina, the AfDB is supporting the implementation of a 518 million dollar Special Agro-Industrial Processing Zones’ (SAPZ) Programme in seven States and the Federal Capital Territory.
He said the bank was doing this together with its Partners, Islamic Development Bank(IDB) and the International Fund for Agricultural Development (IFAD).
He said there are strong interest from 20 other States, which would be supported in the second and subsequent phases.
”Through SAPZs, smallholder farmers can evolve into thriving agri-business through a combination of measures including market linkages, technology transfer and improved access to finance and other inputs,” Adesina said.
