AfDB backs Nigeria’s agro-industrial development with $2.2bn funding
Onome Amuge
Akinwumi Adesina, AfDB president
The African Development Bank Group (AfDB) has successfully facilitated the mobilisation of $2.2 billion in capital commitments for its transformative Special Agro-Industrial Processing Zones (SAPZ) Nigeria Phase II project.
Key stakeholders from both the public and private sectors, including Nigerian state governors, heads of multilateral development organisations, diplomats, and private sector investors, gathered at the Africa Investment Forum in Morocco to affirm their commitment to scaling up financing for the Federal and State Governments of Nigeria, with the specific aim of supporting the initiative.
The SAPZ Nigeria initiative promises to herald a new era of growth and development in Nigeria’s agricultural sector, with its ambitious vision aimed at establishing agro-industrial hubs that will not only improve productivity and food security but also raise living standards and create employment opportunities for people in Africa’s most populous country.
Akinwumi Adesina, the AfDB president, described the development as 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 said.
The SAPZ Nigeria Programme, a country-wide initiative supported by the government and led by the private sector, is designed to focus on three key areas: providing infrastructure for the establishment of agro-industrial zones, strengthening institutional capacity and business environment for agro-industrial development, and supporting agricultural productivity, skills development, and private investment across value chains.
SAPZs are strategically located in areas with abundant agricultural production potential, with the objective of providing the necessary infrastructure, common services, and supportive policy incentives to promote the integration of agricultural and industrial businesses.
By fostering value-added manufacturing within these zones, SAPZs have the potential to boost the long-awaited structural transformation of Nigeria’s agricultural sector, bringing about a revitalization of rural areas, enhanced food security, improved employment opportunities, and increased regional and international trade.
The first phase of the SAPZ Nigeria Programme has benefitted seven Nigerian states: Cross River, Imo, Ogun, Oyo, Kaduna, Kwara, and Kano, as well as the Federal Capital Territory.
With the objective of expanding the programme to an additional 24 states within the next three years, SAPZ Nigeria Phase II will connect Nigeria’s agricultural sector to agro-industrialization, driving economic growth and creating a more robust and integrated agricultural value chain.
Beth Dunford, AfDB vice president for Agriculture, Human and Social Development, chaired the presidential boardroom that also featured opening remarks from Bank President Adesina and Banji Oyelaran-Oyeyinka,his senior special adviser on Industrialisation. They highlighted the achievements of Phase I and presented the roadmap for Phase II.
Oyelaran-Oyeyinka assured the audience that phase 1 construction will commence in few months, noting that a flagoff ceremony is planned for this December.
Zahrah Mustapha Audu, adviser to Nigeria’s President Bola Tinubu on foreign direct investment, representing Nigeria’s vice president, and the governors of Katsina, Kaduna, Lagos, Kwara, Plateau States participated in the Boardroom, as well as commissioners and other representatives from Kogi, Gombe, Kebbi, Imo, Anambra, and Niger States.
They reaffirmed their commitment to creating a conducive environment for the initiative, highlighting progress in land allocation, infrastructure readiness, and policy facilitation at the federal and state levels.
Leading investors, such as Arise IIP, Arab Bank for Economic Development in Africa, Africa Export-Import Bank, Sahara Farms, BPI France, Africa50, and the U.S. Development Finance Corporation also attended the Boardroom. At the end of the session, organisers announced a total deal value of $2.2 billion, marking a significant step toward realising the vision of SAPZ Nigeria phase II.
“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,” remarked Abdul B. Kamara, AfDB’s director general for Nigeria.