Source: The Sun Nigeria
The African Development Bank (AfDB) has announced plans to provide $2.2 billion in funding to establish Special Agro-Industrial Processing Zones (SAPZ) across Nigeria. This initiative represents a significant move to enhance agricultural productivity and address the challenges of food insecurity in the country.
According to Mr. Abdul Kamara, the AfDB’s Director General for Nigeria, the disbursement of funds will begin in 2025, with the initial phase focusing on construction and mobilization efforts across seven regions. These include the Federal Capital Territory (FCT), Cross River, Ogun, Oyo, Kaduna, Kano, and Kwara states.
The SAPZ program aims to create agro-industrial hubs, aggregation centers, and value chain systems designed to bolster food security while unlocking economic opportunities for businesses, particularly small and medium enterprises (SMEs) in the agricultural sector. This initiative is expected to generate employment, boost agricultural productivity, and position Nigeria as a leading player in agro-industrial development across Africa.
Although the project was originally approved in 2021, its implementation faced delays due to the need for agreements between the federal government and co-financiers, such as the International Fund for Agricultural Development (IFAD) and the Islamic Development Bank (IsDB). Mr. Kamara has now confirmed that these agreements have been finalized, with bidding documents currently being prepared to ensure smooth execution.
For SMEs and MSMEs operating in Nigeria, the SAPZ initiative presents vast opportunities to scale their businesses, access improved infrastructure, and integrate into value chains, fostering growth, competitiveness, and resilience within the agricultural sector.
