NIGERIA – The African Development Bank (AfDB) has unleashed plans to release US$2.2 billion in funding for the development of Special Agro-Industrial Processing Zones (SAPZ) in Nigeria.
This initiative aims to enhance agricultural productivity, improve food security, and catalyze economic opportunities through agro-industrial development.
Speaking at a recent boardroom session, Dr. Akinwumi A. Adesina, President of the African Development Bank Group, described the SAPZ project as a transformative effort to align Nigeria’s agricultural potential with industrial growth.
The initiative targets seven regions in its first phase, including Cross River, Ogun, Oyo, Kaduna, Kano, Kwara, and the Federal Capital Territory.
Funding milestones and collaborations
The US$2.2 billion investment stems from collaborations between AfDB and its partners, including the International Fund for Agricultural Development (IFAD) and the Islamic Development Bank (IsDB).
Senior Special Adviser to the AfDB President, Banji Oyelaran-Oyeyinka, highlighted that this phase has attracted more investment interest than all SAPZ projects in the 12 African countries currently participating in the program.
“The Nigeria SAPZ phase II presidential boardroom has raised US$2.2 billion, exceeding all prior SAPZ initiatives across the continent,” said Oyelaran-Oyeyinka.
In addition to the African Development Bank Group, stakeholders from private sector entities and global financial institutions, such as Africa Export-Import Bank, Arise IIP, and the U.S. Development Finance Corporation, pledged to bolster the program.
Job creation and food security
The SAPZ initiative is designed to provide infrastructure for agro-industrial zones, improve agricultural value chains, and create jobs. It aims to address food insecurity while supporting smallholder farmers and small and medium enterprises (SMEs).
Through the establishment of agro-industrial hubs, the program seeks to boost rural productivity and link agricultural activities with industrial manufacturing.
Richard Ofori-Mante, AfDB Director, emphasized the zones’ role in revitalizing rural economies and enhancing Nigeria’s global trade competitiveness. The zones will benefit from policy incentives and shared infrastructure to support agricultural and industrial businesses.
Progress and expansion
Though originally approved in 2021, the SAPZ project experienced delays due to coordination challenges between the Nigerian government and co-financiers.
With agreements finalized, AfDB’s Director General for Nigeria, Dr. Abdul Kamara, confirmed that bidding documents are being finalized. The first phase is expected to begin construction activities in December 2024.
Phase II of the program, which seeks to expand to 24 additional states over the next three years, was presented during the boardroom session. This expansion will further integrate Nigeria’s agricultural sector into agro-industrialization, with a focus on enhancing infrastructure and supporting institutional frameworks.
High-Level support and commitments
The boardroom session brought together governors from states such as Kaduna, Kwara, and Lagos, alongside representatives from multilateral organizations, investors, and members of Nigeria’s diplomatic corps.
Princess Zahrah Mustapha Audu, Adviser to President Bola Tinubu on Foreign Direct Investment, emphasized the government’s commitment to fostering a conducive environment for the program, citing progress in land allocation and infrastructure readiness.
Global investment interest
The SAPZ initiative has drawn keen interest from global investors, with commitments totaling US$2.2 billion. This reflects confidence in Nigeria’s potential to drive economic growth through agriculture.
Participants also noted the importance of leveraging partnerships to support sustainable development across Africa.
AfDB Vice President for Agriculture, Human and Social Development, Dr. Beth Dunford, who chaired the event, reiterated the Bank’s commitment to scaling impactful development initiatives.
She outlined a roadmap for expanding SAPZs across Nigeria, building on the successes of the initial phase.
