The Federal Government of Nigeria is preparing to launch Phase One of the Special Agro-Industrial Processing Zones (SAPZ) programme, backed by a significant $538 million investment from the African Development Bank (AfDB).
In a statement released on Sunday, the AfDB revealed that the groundbreaking ceremonies for the launch of Phase 1 will take place on April 8 in Kaduna State and on April 10 in Cross River State.
This landmark initiative, which marks AfDB’s largest single-country programme to date, will be led by Nigeria’s Vice President, Kashim Shettima, and AfDB President, Dr. Akinwumi Adesina. Construction will commence at eight strategic locations: Kaduna, Kano, Kwara, Cross River, Imo, Ogun, Oyo, and the Federal Capital Territory.
“The initiative is being launched at a critical juncture as Nigeria intensifies efforts to diversify its economy and combat the rising challenges of food insecurity,” the statement noted. “Kaduna and Cross River States will lead the charge in this agricultural transformation, signalling a major shift in Nigeria’s approach to agribusiness and food security.”
According to the bank, “With an unparalleled investment of $538 million, SAPZ Phase 1 represents the African Development Bank’s largest programme in any African country to date, highlighting the scale and significance of this endeavour.”
The SAPZ programme reflects President Tinubu’s commitment to bolstering food security, creating sustainable employment opportunities, and rejuvenating peri-urban economies through innovative public-private partnerships.
The statement further emphasized that private sector partners will be responsible for designing, developing, and operating these zones, establishing a sustainable model for agro-industrial growth.
“This launch is expected to generate momentum for SAPZ Phase 2, with an additional 28 states already positioned to participate in this agricultural renaissance. During the recent Africa Investment Forum in Rabat, Morocco, the bank secured an extraordinary $2.2 billion commitment for Nigeria’s Phase 2 SAPZ, signalling strong confidence in the programme’s potential.”
“Lessons learned from Phase 1 will be vital in accelerating the implementation of the next stage,” the statement added.
The SAPZ initiative aims to address Nigeria’s $4.9 billion annual food security deficit and the billions of dollars lost each year due to food insecurity. It represents a crucial developmental priority and an undeniable economic necessity for the country.
Strategically designed to position Nigeria as a global agribusiness leader, the programme effectively leverages co-financing and the specialised expertise of the private sector.
“The Special Agro-Industrial Processing Zone is about developing new economic zones across Africa, situated close to farmers. These zones will feature essential infrastructure—power, water, roads, irrigation—and today, we are investing over $3 billion in more than 11 countries,” Adesina explained.
He further emphasised that agricultural transformation is key to overall national transformation, as agriculture directly impacts people at the grassroots level.
The SAPZ Nigeria Programme employs a comprehensive three-pronged strategy, focusing on infrastructure development, enhancing the business environment, and fostering skills development.
It aims to establish robust infrastructure within the agro-industrial zones, strengthen institutional capabilities, support agricultural productivity, and attract private investment across various value chains.
These zones, strategically located in areas with high agricultural potential, will be equipped with vital infrastructure and common services. Additionally, they will benefit from tailored policy incentives designed to seamlessly integrate agricultural and industrial businesses.
By clustering agro-processing activities in regions of significant agricultural advantage, the SAPZs will bring together producers, processors, aggregators, and distributors, reducing transaction costs while simultaneously boosting productivity and encouraging enterprise development.