Nigeria partners AfDB, others to kick-off $538 million Agro-Industrial processing zone

In collaboration with the African Development Bank (AfDB), the federal government has initiated the inaugural phase of the Special Agro-Industrial Processing Zones (SAPZ) Project in Kaduna after about four years since it was first conceived.

This initiative is part of a broader strategy to address food insecurity and enhance agricultural practices within the nation.

In his remarks during the groundbreaking ceremony held in Kaduna on Wednesday, Nigeria’s Minister of Agriculture and Food Security, Abubakar Kyari, described the SAPZ project as a transformative approach to agro-industrialisation in the country.

“This program is set to transform the way we approach Agriculture and Agro-Industrial Development in Nigeria under the Renewed Hope of our dear President Bola Tinubu,” he said.

He said the project would be a game changer in the history of Nigerian Agriculture and that it is a dedicated agro-processing area within major food production clusters equipped with desirable ultra-modern infrastructure to attract private sector investment into modern agricultural processing of locally produced crops, livestock and other related agricultural activities.

The SAPZ project

SAPZ is one of AfDB’s ambitious initiatives that will be implemented across at least 18 African countries, including Nigeria. According to the bank, the project areas account for 19 of Nigeria’s total land mass and will benefit 50.4 million people.

It said the states where the first phase of the programme will be implemented were selected based on readiness criteria and the need to ensure geographical balance across Nigeria’s six geopolitical zones.

Based on this, in partnership with the federal government and other developing partners, the AfDB launched the SAPZ project in Nigeria in September 2021 during the tenure of Mr Tinubu’s predecessor, former president Muhammadu Buhari. The core aim of the program is to improve food production on a large scale in the country, with six states pencilled down for the first phase.

By December 2021, the AfDB board of directors approved a $210 million loan for the project. At the time, it said the loan would co-finance Phase 1 of the SAPZ project in Nigeria.

The loan comprises an AfDB loan of $160 million and an Africa Growing Together Fund loan of $50 million.

According to the program guidelines, large farming clusters will be set up across the country and also seek to ensure farmers at the grassroots get access to extension services, including mechanised farming and training on the use and maintenance of modern equipment by establishing centres across the 774 Local Governments.

Implementing states

The Phase 1 Zone construction is expected to augment the following value chain commodities: Cross River State – cocoa, rice and cassava, Federal Capital Territory – beef and dairy livestock; Imo State – beef and dairy livestock; Kaduna State – tomato, maize and ginger, Kano State – rice, tomato, groundnuts and sesame oil.

Others are Kwara State – livestock; Ogun State – cassava, rice, poultry and fisheries; and Oyo State – cassava, soybean, and rice.

On Wednesday, Mr Kyari explained that the project is being implemented in strategic partnership with the state government, relevant ministries, departments and agencies, the private sector and with major support from the AfDB, the International Fund Agricultural Development (IFAD) and the Islamic Development Bank (IsDB).

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“The program is designed to commence with Eight locations of Kaduna, Kano, Cross River, Kwara, Oyo, Ogun and Imo States and the Federal Capital Territory, FCT Abuja in the 1st phase,” the Minister said.

He explained that the final process to onboard additional states for the 2nd phase of the programme is almost completed, noting this and many will strengthen the Nigeria Agribusiness ecosystem to respond more effectively and efficiently to the challenges bedevilling the sector.

He said the SAPZ project signals the new dawn in Agricultural investment activities in Nigeria and that it is not merely an agricultural initiative but a catalyst for economic growth and import substitution.

“As we invest in Agro-processing development, we are investing in the future of our communities. The success of SAPZ is rooted in the partnerships we have forged, the partnership between the Federal Government, State Government and International Financial Institutions,” the minister said.