The African Development Bank (AfDB) has expressed dissatisfaction with the slow progress of Nigeria’s Special Agro-Industrial Processing Zones (SAPZ) project, particularly the first phase, raising concerns about the disbursement of the $210 million loan allocated for the initiative.
According to the AfDB’s latest Implementation Progress and Results Report, dated January 30, 2025, 98.39% of the total loan remains undisbursed more than two years after the project’s approval in December 2021. The SAPZ-I project was intended to promote agro-industrial development in Nigeria by establishing processing hubs, improving infrastructure, and boosting agricultural productivity.
However, the project has faced significant delays, prompting warnings from the AfDB and the introduction of corrective measures to speed up implementation. The report notes that procurement for supervision consultants is still in progress in some states, with bidding documents cleared for states like Kaduna, Cross River, Oyo, and Ogun. Kaduna has already advertised its Design Build and Operate (DBO) contract.
Despite these efforts, the overall implementation and disbursement have been slow. As of December 2024, only 1.61% of the total $210 million loan had been disbursed. Of this, the AfDB was to contribute $160 million, while the Africa Growing Together Fund (AGTF) would provide $50 million. However, only 1.93% of the AfDB’s share has been disbursed, and just 0.58% of the AGTF’s portion has been utilized.
The AfDB identified administrative inefficiencies, weak project staff capacity, and delays in procurement as major obstacles hindering disbursement and implementation. The bank also raised concerns about the lack of progress in Imo State, where no major activities have commenced under the project.
