The Federal Government of Nigeria has secured an enhanced funding commitment from the African Development Bank (AfDB) to expand its Special Agro-Industrial Processing Zones (SAPZ) program. This new phase, known as SAPZ Phase 2, is set to extend climate-resilient infrastructure and inclusive agro-industrial growth to an additional 24 states, building on the initial eight states and the Federal Capital Territory (FCT) covered in Phase 1.
The announcement was made following a meeting between Nigeria’s Vice President, Kashim Shettima, and the new AfDB President, Dr. Sidi Ould Tah, on the sidelines of the 80th United Nations General Assembly (UNGA) in New York. Vice President Shettima underscored Nigeria’s position as the largest shareholder in the AfDB and its over $10 billion portfolio with the bank, appealing for further support to drive the country’s economic diversification.
The Special Agro-Industrial Processing Zones initiative is a key part of Nigeria’s strategy to move away from a mono-product, oil-dependent economy and boost value-added agricultural exports. The program aims to create rural-based industrial hubs equipped with essential infrastructure such as power, water, roads, and processing facilities. By bringing agribusinesses closer to the farms, the zones are designed to:
- Reduce post-harvest losses: A major problem in Nigerian agriculture.
- Increase household incomes: By providing farmers with a reliable market for their produce.
- Create jobs: Especially for women and youth, in both the agricultural and processing sectors.
- Enhance food security: By promoting local production and processing.
- Attract private sector investment: Both local and foreign, into the agricultural value chain.
The first phase of the SAPZ program, launched in 2022, was a collaborative effort with funding from the AfDB, Islamic Development Bank (IsDB), and the International Fund for Agricultural Development (IFAD). This initial phase covered states like Kano, Imo, Kaduna, Cross River, Kwara, Oyo, Ogun, and the FCT.
In his remarks, AfDB President Dr. Sidi Ould Tah pledged the bank’s continued support, emphasizing his vision of the AfDB as a “catalyst institution” for mobilizing resources and capital to Africa, rather than just a lending institution. The expansion of the SAPZ program is seen as a crucial step towards transforming Nigeria’s agricultural landscape and unlocking its full economic potential.
