Nigeria Begins Major Agro-Industrialization Drive with AfDB.

Wednesday 9th April 2025

Nigeria’s Agro-Revolution: Construction of Special Agro-Industrial Processing Zones (SAPZ) begins

By inAfrika Reporter

Nigeria’s push for agro-industrial transformation took a giant leap forward with the launch of the Special Agro-Industrial Processing Zones (SAPZ) program’s first phase. Backed by the African Development Bank, the Federal Government, and state governments, the program officially kicked off with groundbreaking ceremonies in Kaduna and Cross River states.

The first event was held in Kaduna, with AfDB President Dr. Akinwumi Adesina, Nigeria’s Vice President Kashim Shettima, and Kaduna State Governor Uba Sani in attendance. A second ceremony followed in Cross River, hosted by Governor Bassey Edet Otu and federal representatives. These events mark the beginning of a $538 million project designed to industrialize Nigeria’s agriculture sector and significantly reduce food imports.

The SAPZ initiative covers eight states—Kaduna, Kano, Kwara, Cross River, Imo, Ogun, Oyo, and the Federal Capital Territory. Funding for the program includes $210 million from the African Development Bank, along with support from the Islamic Development Bank, the International Fund for Agricultural Development, and ARISE Integrated Industrial Platforms.

Nigeria, which spent $4.7 billion on food imports last year, aims to reverse this trend by boosting local agricultural productivity and creating sustainable value chains. The project is expected to increase productivity by over 60% while reducing post-harvest losses and strengthening the connection between farms and markets.

The program will also create over 60,000 jobs in each participating state, offering a significant economic boost for rural communities. Each state will specialize in specific crops based on local conditions. Kaduna will focus on maize, soybeans, ginger, and tomatoes, while Cross River will concentrate on cocoa, cassava, and rice.

Strategically, the agro-industrial sites are located near key universities like Ahmadu Bello University and the University of Calabar, allowing integration with research and skilled human capital. This synergy is expected to support innovation and technological adoption in farming and processing practices.

With 37% of the AfDB’s $5.1 billion Nigeria portfolio currently allocated to private sector development, the SAPZ program highlights the country’s potential as a hub for agri-business and food security. The zones will serve as models for replicable Agro-industrialization across Africa.