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AfDB pledges $2.2 billion as VP Shettima unveils SAPZ project in Cross River
Atinuke | 15th April 2025

The Federal Government has started building the Special Agro-Industrial Processing Zone (SAPZ) in Calabar, Cross River State, as part of a national initiative to modernise the agriculture industry and promote equitable economic growth throughout Nigeria.

This facility is the second to be initiated within 72 hours of Vice President Kashim Shettima’s groundbreaking ceremony on Tuesday for the construction of the Kaduna State SAPZ in Chikun local government area.

The AfDB has reiterated its intention to raise an extra $2.2 billion to carry out the second phase of the SAPZ project in 28 Nigerian states.

Speaking on Thursday when he performed the groundbreaking ceremony of SAPZ in Calabar, the Vice President described the project as “a game changer” that aligns with the President Tinubu administration’s Renewed Hope Agenda, aimed at diversifying the nation’s economy, addressing food security, tackling rural unemployment, as well as empowering farmers and the youth population.

“There is no intervention more practical in our dream of a nation where the potential of agriculture is maximised than what’s brought us together today. This isn’t just a project—it’s a bold vision to transform Nigeria’s agricultural value chain,” VP Shettima said.

According to him, the SAPZ initiative, supported with counterpart funding from development partners and the private sector, is designed to address challenges that have long hindered the growth of Nigeria’s agricultural economy, including inadequate processing infrastructure, limited access to markets, and rural unemployment.

“For far too long, our farmers have contended with poor infrastructure, lack of access to finance, and inadequate processing facilities. This zone is designed to confront those challenges head-on by creating an ecosystem where innovation, investment, and collaboration thrive,” he noted.

VP Shettima explained that the Calabar SAPZ will serve as a hub for agro-processing and storage, providing farmers and agripreneurs with critical infrastructure to scale their operations and tap into local and international markets.

“This is where farmers will meet with private investors, where ideas will turn into enterprise, and where our youth will find meaningful opportunities,” he said, disclosing that the Tinubu administration has classified SAPZ as a priority program in Nigeria’s quest for food security, with plans to institutionalise it as a government agency that will facilitate agricultural industrialisation across all 36 states.

“These zones will generate thousands of jobs. They will create opportunities for young people, empower them with skills and knowledge to engage in meaningful work and help them contribute positively to the economy. Cross Riverians, development has come to your doorstep. For you and the country, SAPZ is a game changer that will enable Nigeria to diversify its economy with a sustainable source,” he stated.

Shettima also expressed gratitude to key international development partners, including the African Development Bank (AfDB), the Islamic Development Bank (IsDB), and the International Fund for Agricultural Development (IFAD), for their support and belief in Nigeria’s vision.

The vice president applauded the governor of Cross River State, Senator Prince Bassey Edet Otu, for his cooperation, calling him “a great ally in development and a critical foundation for the success of this intervention.”

According to Senator Otu, the governor of Cross River State, the program earlier marked a turning point in his administration’s continuous efforts to fully utilise agriculture and its many value chains to develop the state’s renewable resource base.

Otu said that the proper first step towards the agro-industrial revolution in Cross River State is forming a network of smallholder farmers growing cash crops like rice, cassava, millet, and cocoa throughout the state.

He said the paradigm shift from a non-renewable to a renewable resource base also holds the key to the prosperity of many nations, hence the imperative to join the league of sub-nationals in Nigeria that have adopted agriculture as the mainstay of their economy.

“The deliverables of the envisaged projects are food security, diversification of the state economy towards export-oriented trajectory and increase in the State’s GDP. When these projects are fully operational, robust collaboration is expected with reputable agro-based processing institutes, universities, and the rest to accelerate agro-industrial production breakthroughs.”

Additionally, as part of President Tinubu’s Renewed Hope Agenda, Senator Abubakar Kyari, Minister of Agriculture and Food Security, stated that the program would revolutionise Nigeria’s agricultural productivity and agro-investment environment.

In addition to praising the governor of Cross River State for his dedication to making sure the state is one of the leading states to start building its Agro-Industrial Processing Hub, Kyari thanked Vice President Shettima for his political support and leadership at the highest level in implementing the SAPZ in Nigeria.

During his remarks, AfDB President Dr Akinwumi Adesina reaffirmed the bank’s commitment to mobilise $2.2 billion to implement the SAPZ project in 28 Nigerian states.

Adesina observed that Cross River State has a significant role in Nigeria’s agricultural transformation because of the state’s vast production of cocoa, cassava, rice and banana, saying Obudu Cattle Ranch alone can turn the state into an enormous livestock producer.

He also acknowledged that the state is ideal for SAPZ because it has an export processing zone, port facility, and export handling capabilities. He added that the SAPZ in Calabar can easily be linked to the seaport for transporting processed agricultural commodities to the export market in neighbouring countries, including Cameroon and the rest.

“The African Development Bank, as you know, is spearheading this together with our partners, which include the Islamic Development Bank and the International Fund for Agricultural Development, and we have put together $934 million from the African Development Bank, with core financing of $938 million from these partners.

“The first phase of SAPZ in Nigeria will be in eight states: Cross River, Kaduna, Kano, Katsina, Oyo, Ogun, Kwara, Imo, and the Federal Capital Territory. We are delighted with our partnership with the Islamic Development Bank and the International Fund for Agricultural Development.

“We have put together a financing package of $510 million to make this work. In the second phase, we expect to mobilise $2.2 billion to work for 28 states across the federation with several partners,” the AfDB President said.

Source: The State House

Image Credit: Premium Times