The African Development Bank (AfDB) has approved a significant funding package of $2.2 billion to enhance agricultural development in Nigeria through the establishment of Special Agro-Industrial Processing Zones (SAPZ).
Speaking during Channels Television’s 2024 End-of-Year Review, themed “Focus on the Agriculture Sector, Food Security, Research, and AfDB Investments,” the Director General of AfDB’s Nigeria Office, Abdul Kamara, highlighted the bank’s commitment to strengthening Nigeria’s agricultural value chain.
Kamara explained that implementation activities, including contract signing and on-site construction, would commence in 2025 across selected states. However, the rollout will vary by location, with not all states starting simultaneously.
The SAPZ initiative, originally approved by the AfDB Board in 2021, experienced delays due to procedural challenges, such as securing agreements with Nigeria’s Federal Government and co-financiers, including the International Fund for Agricultural Development (IFAD) and the Islamic Development Bank.
“We are now finalizing bidding documents in all seven states involved—FCT, Cross River, Ogun, Oyo, Kaduna, Kano, and Kwara—to expedite the process,” Kamara said.
At the recent African Investment Forum, additional pledges from various financiers reinforced the project’s total funding, reaching $2.2 billion. Kamara expressed confidence in the initiative’s impact, stating, “The SAPZ project will deliver tangible results, just as we’ve seen in other regions.”
AfDB alone is contributing $1 billion to the project, with other co-financiers and stakeholders adding significant support, demonstrating the bank’s role as a convener and catalyst for sustainable agricultural growth in Nigeria.
This investment is expected to enhance food security, create jobs, and boost economic growth in the targeted regions, further solidifying Nigeria’s position as an agricultural powerhouse in Africa.