AfDB Secures $2.2bn For Nigeria’s Agro-Industrial Transformation

The African Development Bank (AfDB) has brokered the mobilisation of $2.2 billion to propel the second phase of Nigeria’s Special Agro-Industrial Processing Zones (SAPZ) initiative. The announcement, made during the Africa Investment Forum in Morocco, reflects a strong coalition of support from Nigerian state governors, global development organisations, diplomats, and private investors.

Building on the achievements of Phase I, the funding marks a critical step in aligning federal and state governments with transformative agricultural infrastructure. The initiative aims to accelerate Nigeria’s agro-industrialisation and economic diversification efforts.

Scaling New Heights

According to the AfDB, Phase II will extend the programme’s reach to 24 additional states over the next three years, reinforcing the integration of agriculture with industrial development. States already benefiting from Phase I include Cross River, Imo, Ogun, Oyo, Kaduna, Kwara, Kano, and the Federal Capital Territory.

Dr. Akinwumi Adesina, President of the AfDB, described the initiative as pivotal:

“This is a defining moment for Nigeria’s agricultural transformation. The SAPZ II project will create millions of jobs, empower smallholder farmers, and position Nigeria as a leader in agro-industrialisation. These investments exemplify the power of collaboration to achieve sustainable development in Africa.”

Unprecedented Investment

The announcement followed a boardroom session chaired by Dr. Beth Dunford, AfDB Vice President for Agriculture, Human, and Social Development, and attended by notable investors, including Arise IIP, the Arab Bank for Economic Development in Africa, Africa Export-Import Bank, Sahara Farms, BPI France, Africa50, and the US Development Finance Corporation.

By the end of the session, the total deal value of $2.2 billion was confirmed, marking a milestone for SAPZ Phase II.

Prof. Banji Oyelaran-Oyeyinka, Senior Special Adviser on Industrialisation, highlighted the progress of Phase I and laid out plans for the upcoming phase, including the commencement of construction within months and a flag-off ceremony scheduled for December.

Dr. Abdul Kamara, AfDB’s Director-General for Nigeria, welcomed the enthusiasm of the investment community:

“This substantial commitment from our financing partners is a testament to Nigeria’s efforts to attract investment into its agricultural sector, addressing food security, job creation, and economic growth.”

A Vision for Agro-Industrial Excellence

The SAPZ programme is a flagship, nationwide initiative designed to revolutionise Nigeria’s agricultural landscape. By strategically situating zones in high agricultural production areas and equipping them with infrastructure, common services, and policy incentives, SAPZs aim to attract private-sector investment and stimulate economic development.

Princess Audu, Adviser to President Bola Tinubu on Foreign Direct Investment, who represented Nigeria’s Vice President at the forum, emphasised the importance of such collaborations in achieving national development goals.

As Nigeria continues to grapple with the challenges of food security and unemployment, the SAPZ programme presents a transformative opportunity to reimagine agriculture as the cornerstone of industrial and economic progress. The success of this initiative could set a benchmark for agro-industrialisation across the African continent.