African Development Bank to Mobilise $2.2 Billion for Special Agro-Processing Zones in 28 Nigerian States
In a groundbreaking move to accelerate Nigeria’s agricultural transformation, the African Development Bank (AfDB) has announced an ambitious plan to mobilize $2.2 billion for the establishment of Special Agro-Industrial Processing Zones (SAPZs) in 28 states across the country. This visionary initiative aims to revolutionize agro-industrialization, strengthen food security, and stimulate inclusive economic development across Nigeria’s vast and varied landscape.
The announcement was made by AfDB President, Dr. Akinwumi Adesina, during the ceremonial groundbreaking of the SAPZ facility in Calabar, Cross River State. Dr. Adesina, a former Nigerian Minister of Agriculture, emphasized the state’s immense potential in agro-industrial growth. Highlighting Cross River’s prolific production of key agricultural commodities—including cocoa, cassava, rice, and bananas—he noted that the region is strategically positioned to play a pivotal role in the success of the SAPZ project.
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He particularly underscored the value of the Obudu Cattle Ranch, which he described as a latent hub capable of transforming Cross River into one of Nigeria’s leading livestock-producing regions. Coupled with its advantageous logistics infrastructure—such as the export processing zone, access to seaports, and export handling capabilities—Cross River is well-placed to serve as a model for SAPZ implementation.
“This agro-industrial processing zone is designed to plug directly into the Calabar Seaport, enabling efficient export of high-value, processed agricultural products to markets in neighboring countries like Cameroon, and throughout the wider West African region,” Dr. Adesina said.
He went on to reveal that the AfDB, alongside major global development institutions including the Islamic Development Bank and the International Fund for Agricultural Development (IFAD), has mobilized a robust financing package totaling $934 million, with core co-financing of $938 million. This fund will drive the initial phase of SAPZ deployment.
“Phase one of the SAPZ will cover eight states—Cross River, Kaduna, Kano, Katsina, Oyo, Ogun, Kwara, and Imo—plus the Federal Capital Territory. With strategic collaboration and additional investments, we aim to expand this impact to all 28 states, supported by a further $2.2 billion in financing,” Adesina affirmed.
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Speaking at the event, Nigeria’s Vice President, Senator Kashim Shettima, hailed the SAPZ project as a bold leap toward unlocking the full potential of Nigeria’s agriculture sector. According to him, this program represents a cornerstone of the Tinubu administration’s economic diversification efforts and food security agenda.
“There’s no intervention more emblematic of our national agricultural aspirations than the SAPZ project. It’s not merely an infrastructure initiative—it’s a powerful vision to rejuvenate the entire agricultural value chain and spur inclusive prosperity,” Shettima remarked.
The Vice President noted that the SAPZ program is driven by a multi-stakeholder approach, integrating counterpart funding from the federal and state governments, international partners, and private investors. This synergy, he said, is necessary to dismantle deeply entrenched challenges such as inadequate processing infrastructure, constrained access to finance, and persistent rural unemployment.
“For too long, Nigerian farmers have operated at a disadvantage due to poor infrastructure, inefficient market linkages, and minimal access to post-harvest value addition. The SAPZ seeks to change this narrative by constructing a vibrant ecosystem that welcomes innovation, investment, and youth-driven enterprise,” Shettima explained.
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The Calabar SAPZ, as outlined, will become a dynamic hub for agro-processing, storage, packaging, and distribution. Farmers, agribusinesses, and cooperatives will benefit from proximity to processing centers and logistic facilities, empowering them to transition from subsistence farming to commercial agriculture.
“This is where vision meets opportunity. Where young Nigerians will find dignified jobs, where private capital will flourish, and where agricultural entrepreneurship will take root and bloom. This is a game-changer for Cross River and for Nigeria,” Shettima added.
Senator Shettima also revealed that President Bola Ahmed Tinubu’s administration has prioritized the SAPZ project within its national development framework. The government plans to establish a dedicated agency to oversee the SAPZs, ensuring sustained momentum and institutional continuity in driving Nigeria’s agricultural industrialization.
“Our mission is to institutionalize this initiative so that it becomes a permanent engine for economic transformation. These zones will create thousands of jobs, boost GDP, empower youth and women, and position Nigeria as a regional agro-export leader,” he stated.
The broader impact of SAPZs includes enhancing Nigeria’s global competitiveness in agribusiness, reducing post-harvest losses, promoting rural infrastructure development, and ensuring resilient food systems that can withstand economic and climatic shocks.
Dr. Adesina also stressed that the SAPZ model is being adopted in multiple African countries due to its proven capacity to accelerate agricultural productivity and rural development. “Nigeria is setting a bold example for the continent. With the right policies, investment frameworks, and political will, we can feed ourselves and the rest of Africa,” he said.
The SAPZ initiative is also being hailed for its potential to stimulate robust public-private partnerships. Industry experts predict that private sector involvement in the zones will catalyze investment in modern technologies, value chain optimization, and export-oriented production models.
The project also incorporates youth empowerment as a core pillar. Through targeted training, agritech incubation, and capacity-building programs, young Nigerians will be positioned at the forefront of agricultural innovation. This is expected to curb youth unemployment and rural-urban migration by offering sustainable livelihoods in agribusiness.
“The SAPZ is not just a project; it is a movement—an intentional strategy to redefine what it means to be a farmer in Nigeria. We are creating new models of prosperity, grounded in agriculture but powered by innovation,” said Adesina.
Cross River State Governor, Senator Bassey Otu, expressed gratitude for the federal government and AfDB’s decision to make the state one of the pioneer locations for SAPZ. He promised that the state government would provide all necessary support—ranging from policy backing to land acquisition and investor facilitation—to ensure the project’s success.
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“We are honored to be a pathfinder in this transformational journey. Our commitment is total, and we look forward to making Cross River a model for other states to emulate,” Governor Otu stated.
He highlighted existing initiatives in the state, such as the revitalization of rural access roads, support for smallholder farmers, and agribusiness-friendly policies, as factors that complement the SAPZ vision.
With construction underway in Calabar and more zones in the pipeline, Nigeria is at the cusp of a new agricultural era—one characterized by modernization, inclusivity, and competitiveness. The AfDB’s financial leadership, combined with strong federal and state-level commitments, signals a turning point in the nation’s economic trajectory.
As stakeholders continue to rally behind the SAPZ blueprint, hopes are high that Nigeria’s journey from a food-importing to a food-exporting nation will soon become reality. The SAPZ initiative is more than infrastructure—it is a generational opportunity to unlock the wealth of the land and the ingenuity of its people.
Nigeria is sowing the seeds of a brighter, self-reliant future—and with the SAPZ program in full swing, that future is now within reach.
Source: SR
