Major Boost for Agricultural Development
Nigeria will benefit significantly from a $4.4 billion investment aimed at expanding Special Agro-Industrial Processing Zones (SAPZ) across all 36 states and the Federal Capital Territory. The African Development Bank (AfDB) is leading this initiative to transform agriculture and drive economic growth.
AfDB President Akinwunmi Adesina emphasized the investment’s importance in an interview with Arise TV, stating that agricultural transformation plays a crucial role in economic development.
Transforming Agriculture Through SAPZ
The SAPZ program, launched in 2022, focuses on modernizing agriculture by creating agro-processing clusters. These zones will improve productivity, enhance value addition, and create more job opportunities, particularly in rural areas.
“Economic transformation remains incomplete without agricultural transformation because agriculture directly impacts people at the grassroots level,” Adesina said.
He explained that these zones will operate near farming communities, providing essential infrastructure such as power, water, roads, irrigation, and digital connectivity. By offering these facilities, SAPZ will attract agro-processing companies, reduce post-harvest losses, and generate employment.
A New Era for Agro-Processing
One of SAPZ’s primary objectives is to establish a system where agro-processing firms source raw materials directly from farmers. This will boost rural economies while increasing value creation in the agricultural sector.
“These zones will serve as hubs for processing companies, allowing them to purchase raw materials from farmers and turn them into finished products. This will create new wealth in rural communities,” Adesina explained.
Growing Financial Commitments
The AfDB has already directed over $3 billion toward SAPZ projects in 11 African countries. In Nigeria, the initial funding target stood at $750 million, but strong interest from stakeholders increased the investment to $4.4 billion.
“We initially secured an $851 million partnership with the Islamic Development Bank and the International Fund for Agricultural Development,” Adesina revealed.
At the Africa Investment Forum in December, discussions with Nigerian governors resulted in additional funding. “We started with a $750 million target, but we later secured $2.2 billion, which eventually rose to $4.4 billion,” he added.
Closing Infrastructure Gaps for Local Processing
A major challenge in Nigeria’s agricultural sector has been the lack of infrastructure, forcing many farmers to transport raw produce to urban areas for processing. SAPZ aims to change this by enabling local processing and reducing dependency on external markets.
“This model has already worked in several African countries, and I have no doubt that Nigeria will see similar success,” Adesina said.
With this investment, Nigeria’s agricultural sector will experience higher output, fewer post-harvest losses, and greater value addition, positioning the country as a key player in agro-industrial development.
