The African Development Bank Group (AfDB) has reached an agreement with participating Nigerian state governments to expedite the implementation of a program aimed at developing eight new agro-industrial zones across the country. The agreement was finalized during a two-day meeting in Abuja on October 7–8, attended by senior government officials, AfDB representatives, financing partners, and private sector stakeholders.
Launched in 2022, the Nigeria Special Agro-Industrial Processing Zones (SAPZ) program aims to establish hubs that integrate crop and livestock production, processing, and distribution. The goal is to enhance food security, boost incomes, improve livelihoods, and support economic diversification. By reducing reliance on food imports and increasing agricultural exports, SAPZs are expected to strengthen Nigeria’s foreign exchange reserves.
The first phase of the SAPZ project will be implemented in seven states and the Federal Capital Territory, with $538 million in co-financing from the African Development Bank Group, the International Fund for Agricultural Development (IFAD), the Islamic Development Bank (IsDB), and the Federal Government of Nigeria.
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, emphasized the importance of the program’s success, stating, “With inflation decreasing, reserves growing, and the exchange rate stabilizing, SAPZs must deliver tangible results as part of President Bola Tinubu’s macroeconomic stabilization efforts.”
Minister of Agriculture and Food Security, Abubakar Kyari, highlighted the need for alignment between federal, state, and development partner efforts to ensure that the SAPZ program benefits rural areas, where its impact will be most significant.
Dr. Abdul Kamara, Director General of AfDB’s Nigeria Country Department, said the meetings aimed to strengthen collaboration among key stakeholders, including the private sector. Participants shared insights and agreed on next steps to accelerate Phase 1 of the program, which will be followed by further expansion to additional states.
Stressing the urgency of overcoming delays, Prof. Banji Oyelaran-Oyeyinka, Senior Special Adviser to the AfDB President on Industrialization, noted that the swift implementation of SAPZs is crucial to reversing the declining contribution of manufacturing to Nigeria’s GDP.
The second day of the meeting included a workshop where federal and state government officials, development partners, and private sector investors discussed financial, procurement, and operational strategies for accelerating the program’s rollout. Governments committed to transparent, competitive procurement processes, including independent vendor selection.
The sessions, moderated by Dr. Victor Oladokun, Senior Advisor on Communications and Stakeholder Engagement to the AfDB President, also outlined the complementary roles of stakeholders. Governments and financial institutions will play a catalytic role, while private sector partners will invest in the construction and operation of key components, such as Agro-Industrial Processing Hubs (AIHs) and Agricultural Transformation Centres (ATCs).
Phase 1 of the Nigeria SAPZ program is projected to attract around $1 billion in private sector investments, benefiting an estimated 1.5 million households, including private agribusinesses, smallholder farmers, and agro-processors. It is expected to create 400,000 direct jobs and 1.6 million indirect jobs, with a focus on opportunities for women and youth.
