The African Development Bank (AfDB) is set to begin disbursing a $2.2 billion fund for the development of Special Agro-Industrial Processing Zones (SAPZ) across Nigeria. This initiative aims to establish agro-industrial hubs that will facilitate processing, create aggregation centers, and support agricultural transformation in the country.
Abdul Kamara, the Director-General of the AfDB Nigeria Office, announced the development .He confirmed that starting in 2025, contracts will be signed, and construction work will commence in select states, although not all states will begin simultaneously.
Kamara clarified that although the SAPZ initiative was approved by the AfDB Board in 2021, its rollout had faced delays due to multiple factors. “When you approve a program, you must sign agreements with the Nigerian Government, especially for a project of this magnitude. You also need agreements with co-financiers, which led the Bank to bring in the International Fund for Agricultural Development (IFAD) and the Islamic Development Bank as partners,” he explained.
The SAPZ project will span several states, including Cross River, Ogun, Oyo, Kaduna, Kano, Kwara, and the Federal Capital Territory (FCT). AfDB has already engaged state governors and is progressing with preparations, including publishing bidding documents to streamline the process.
Kamara emphasized that the $2.2 billion fund is a collective investment, with AfDB contributing around $1 billion. Additional financing is being secured from other investors, reinforcing the Bank’s role as a convener of development projects.
The SAPZ initiative is expected to significantly contribute to Nigeria’s agricultural sector, boosting food security, creating jobs, and facilitating sustainable economic growth. The project has gained momentum and is now moving forward after overcoming its initial hurdles.
