Nigeria to Benefit from $4.4bn Agro-industrial Processing Zone Investment
President of the African Development Bank, Akinwumi Adesina, has revealed that Nigeria will gain significantly from a $4.4bn investment aimed at expanding the Special Agro-Industrial Processing Zones across all 36 states and the Federal Capital Territory.
In an interview with Arise TV on Monday, Adesina said agricultural transformation is critical to fostering broader economic growth.
The SAPZ programme, established in 2022, seeks to transform the agricultural sector by establishing agro-processing clusters.
These zones will focus on boosting agricultural productivity, promoting value addition, and creating employment opportunities, especially in rural areas.
“Transformation without agricultural transformation is incomplete because agriculture touches the lives of people at the grassroots level,” Adesina remarked.
He elaborated that the SAPZ initiative seeks to create economic zones strategically located near farmers, equipped with vital infrastructure, including power, water, roads, digital connectivity, and irrigation systems.
These facilities will serve as magnets for agro-processing companies, reducing post-harvest losses while generating jobs.
“These zones will attract companies that will purchase raw materials from farmers for processing, thereby creating a new ecosystem of wealth in rural economies,” Adesina explained.
The AfDB has already committed over $3bn to SAPZ projects across 11 African countries. In Nigeria, the initial goal was to raise $750m for the initiative, but this target was significantly exceeded, with the figure climbing to $2.2bn, which later increased to $4.4bn.
“We initially put together an $851m programme with the Islamic Development Bank and the International Fund for Agricultural Development. At the Africa Investment Forum last December, I engaged Nigerian governors in raising more funds. We started with a target of $750m but eventually secured $2.2bn, which later grew to $4.4bn,” he disclosed.
Adesina further underscored that the SAPZ initiative would empower Nigeria to process more of its agricultural produce locally, addressing long-standing infrastructure deficiencies that have previously led to the transportation of raw commodities to urban areas for processing.
“This model is already working successfully in several African countries, and I have no doubt it will succeed in Nigeria,” he concluded.
