AfDB Attracts $2.2bn for Nigeria’s Special Agro-industrial Processing Zones

By Modupe Gbadeyanka

Investors are interested in investing about $2.2 billion in the Special Agro-Industrial Processing Zones Nigeria Phase II project.

This was recently facilitated by the African Development Bank Group (AfDB) at the Africa Investment Forum.

The initiative is expected to revolutionize Nigeria’s agricultural sector, as it will create agro-industrial hubs that drive productivity, enhance food security, raise living standards and create jobs.

Those interested in the project include Arise IIP, Arab Bank for Economic Development in Africa, Africa Export-Import Bank, Sahara Farms, BPI France, Africa50, and the US Development Finance Corporation.

They engaged the Nigerian government at a meeting on Wednesday, December 4, 2024.

The SAPZ Nigeria Program is a country-wide government-enabled and private-sector-led investment program that will, (i) provide infrastructure for the establishment of agro-industrial zones, (ii) strengthen institutional capacity and business environment for agro-industrial development and (iii) support agricultural productivity, skills, and private investment across value chains.

SAPZs are established in areas with high agricultural production potential. They are provided with infrastructure, common services, and supported by policy incentives to integrate agricultural and industrial businesses. Through value-added manufacturing, they have the potential to trigger the long-delayed structural transformation that revitalizes rural areas, enhance food security, improve employment, and boost regional and international trade.

Phase I Nigerian States benefiting from the program are Cross River, Imo, Ogun, Oyo, Kaduna, Kwara and Kano, and the Federal Capital Territory. SAPZ Nigeria Phase II is underway to expand to an additional 24 States in Nigeria in the next 3 years and will link Nigeria’s agriculture to agro-industrialization to drive economic growth.

The president of AfDB, Mr Akinwumi Adesina, said, “This is a defining moment for Nigeria’s agricultural transformation.”

“The Nigeria SAPZ II project will create millions of jobs, empower smallholder farmers, and position Nigeria as a leader in agro-industrialization. These investments exemplify the power of collaboration to achieve sustainable development in Africa,” he added.

The bank’s Director General for Nigeria, Mr Abdul Kamara, said, “I am pleased to see this whopping investment interest and commitments by our financing partners for Nigeria, at a time when the country is ramping up efforts to attract investments into the agriculture sector to address food security, create job opportunities and boost economic growth.”