Background Information
he significance of agriculture in the economy of a nation cannot be overstated because it is the economic mainstay of the majority of households in Nigeria. Agriculture can be an engine of growth for overall national development, but igniting inclusive growth has proven difficult. Thus, proactive utilization of agricultural resources would enable a country to feed its growing population, create employment opportunities, earn foreign exchange, and provide raw materials for industries.
Agricultural activities in this part of the country are typically characterized by low harvestable yields, postharvest losses, a lack of processing facilities, low-income returns, and numerous other challenges that have been bedeviling this sector. Moreover, agricultural production is primarily in the hands of many small-scale, unorganized farmers scattered across the country. Lack of organization, coupled with the dispersed nature of farmers, hinders their participation in agricultural and rural development. This impedes the supply of extension services, farm credit, and other vital inputs to farmers. These have created gaps that need to be addressed to achieve food security.
Nigeria’s projected population of 329 million people (Abbani, 2021, Statista, 2026), with roughly 60 million living in poverty, demands immediate action. Food security and sustainability for the Nigerian population is the goal of the present Government, particularly the OYSG, under the current administration, which has made food sufficiency one of its key objectives. It is on the note of the continuous increase in demand for food, coupled with the renewed drive of the OYSG, that an agricultural hub to cater to food cultivation, processing, and distribution was conceived, and committed efforts are being made towards its actualization.
Agricultural development remains the central focus of the Oyo State Agribusiness Development Agency (OYSADA) policy under the Public–Private Development Partnership (PPDP) framework. Within this framework, the African Development Bank (AfDB) serves as a key private and development partner supporting the transformation of Oyo State’s agricultural landscape. The initiative strategically positions private investors, in collaboration with AfDB and the State Government, to drive the shift from low-productivity, subsistence-based farming to a system characterized by high productivity, integrated value chains, and extensive value addition, thereby enhancing food security, employment generation, and rural economic growth across the state.
In this regard, the Oyo State Agribusiness Development Agency (OYSADA), under the framework of the Oyo State Commercial Agriculture Development Project, is spearheading the revitalization of two strategic farm settlements—Eruwa Farm Settlement in Ibarapa East Local Government Area and Akufo Farm Settlement in Ido Local Government Area. These projects are being implemented in collaboration with the African Development Bank (AfDB) under the Special Agro-Industrial Processing Zones (SAPZ) Programme.
The Eruwa ATC is designed as a flagship pilot project within this initiative. The groundbreaking ceremony, held on Thursday, 21 November 2024, formally signalled the redevelopment of the Eruwa Farm Settlement through a Public–Private Partnership (PPP) model between the Oyo State Government, AfDB, and selected private investors.
Originally established in the 1950s by the Western Nigeria Government, the Eruwa Farm Settlement was conceived as an agricultural training and production centre to promote food security and rural development. Its selection for transformation into an agribusiness hub was guided by a set of technical, socio-economic, and environmental criteria.
The project will adopt circular economy principles by prioritizing waste minimization, resource recovery, and reuse where technically and economically feasible.
In accordance with the provisions of the Nigerian Environmental Impact Assessment (EIA) Act No. 86 of 1992 (Cap E12 LFN 2004), and the African Development Bank’s Integrated Safeguards System (ISS) and Environmental and Social Assessment Procedures (ESAP, 2015), an ESIA study of the proposed Project has been conducted. Where relevant, the assessment also reflects elements of Good International Industry Practice (GIIP). The study also aligns with OYSG’s corporate policies on environmental protection and human health.
The purpose of the EIA study is to identify and assess the potential environmental and social (E&S) risks and impacts of the Project so that they can be appropriately managed. The EIA study has been conducted to encompass the entire life cycle of the proposed Project.
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