Phase One of the Special Agro-Industrial Processing Zones (SAPZ) program, supported by a substantial $538 million investment from the African Development Bank (AfDB), is scheduled to be launched by the Federal Government of Nigeria.
The AfDB said on Sunday, April 6th, that Phase 1 will begin with groundbreaking ceremonies on April 8 in Kaduna State and April 10 in Cross River State.
AfDB President Dr Akinwumi Adesina and Nigerian Vice President Kashim Shettima will lead this historic endeavour, the organisation’s largest single-country program.
Construction will begin across eight key locations: Kaduna, Kano, Kwara, Cross River, Imo, Ogun, Oyo, and the Federal Capital Territory.
“The initiative is being launched at a critical time as Nigeria intensifies efforts to diversify its economy and combat rising food insecurity,” the statement read. “Kaduna and Cross River States will lead this agricultural transformation, marking a pivotal shift in Nigeria’s agribusiness and food security approach.”
“This launch is expected to catalyse momentum for SAPZ Phase 2, with an additional 28 states already positioned to participate in this agricultural renaissance.
The recent Africa Investment Forum in Rabat, Morocco, saw the bank secure an unprecedented $2.2 billion commitment for the Nigeria Phase 2 SAPZ, indicating strong confidence in the programme’s potential.
“Lessons learned from the initial phase will be crucial for accelerating the implementation of this next stage, “it said.
The SAPZ effort targets Nigeria’s $4.9 billion yearly food security crisis and the billions lost each year due to food insecurity. It is a crucial development goal and an unquestionable economic need for the country.
The program strategically plans to convert Nigeria into a worldwide agricultural leader using co-financing and the private sector’s specialised skills.
“The Special Agro-Industrial Processing Zone is about developing new economic zones across Africa, close to where farmers are. These zones have enabling infrastructure—power, water, roads, irrigation—and today, we’re investing over $3 billion in more than 11 countries,” Adesina explained.
The SAPZs will lower transaction costs by bringing together producers, processors, aggregators, and distributors. They will focus on agro-processing activities in areas where agriculture thrives. Additionally, they will help businesses grow and become more productive.
Source: Nairametrics
