AfDB Commits to Funding Nigeria’s Agro-Industrial Processing Zones Expansion

The Federal Government has secured a renewed funding commitment from the African Development Bank (AfDB) to scale up the second phase of the Special Agro-Industrial Processing Zones (SAPZ).

The expansion will extend the programme to 24 additional states, moving beyond the initial seven states and the Federal Capital Territory.

According to a statement by Stanley Nkwocha, Senior Special Assistant to the Vice President on Media & Communications, on September 28, the pledge was made following Vice President Kashim Shettima’s meeting with AfDB President, Dr. Sidi Ould Tah, in New York during the 80th United Nations General Assembly (UNGA).

The SAPZ programme was launched in October 2022 by then Vice President, Yemi Osinbajo. He said the initiative had the potential to banish food insecurity, boost agricultural exports, and create millions of agro-industrial jobs within a decade.

The first phase of SAPZ covered Kano, Imo, Kaduna, Cross River, Kwara, Oyo, Ogun, and the Federal Capital Territory, with co-financing of $210 million from AfDB, $310 million from the Islamic Development Bank (IsDB) and IFAD, and a $18.05 million contribution from the Nigerian government

According to Osinbajo, the programme was designed as a government-enabled but private sector-led initiative to attract large-scale investment into crop and livestock value chains. The zones were expected to reduce Nigeria’s food import bill, expand export earnings, and provide sustainable jobs for women and youth while reviving stranded agro-industrial assets across the country.

The Vice President said Nigeria’s goal is to transform its mono-product economy by leveraging agriculture, especially for value-added exports. He reminded AfDB of the country’s status as its largest shareholder with a portfolio exceeding $10 billion.

“We urge you to further support us in the phase 2 Special Agro-Industrial Processing Zones (SAPZ). You assisted us with $300 million when you were in Liberia. We want to thank you, but like Oliver Twist, we are asking for more because we are poised to diversify our mono-product economy into agriculture, especially value-added agricultural export.

And we have the potential in all the agro-ecological zones in Nigeria. From the mangrove forest swamps in the south to the Sahelian region in the far north, you can virtually grow anything. In states like Kebbi, the soil is very fertile,” he said.

The Vice President also stressed that Nigeria’s youthful population is eager to be integrated into a modern workforce, describing them as resourceful and development-oriented.

He urged AfDB to broaden its scope beyond MSMEs to include support for innovation-driven enterprises, particularly in the digital economy.

“We can catalyse and accelerate the digital space in Africa. Already, out of the eight unicorns in Africa, five are from Nigeria – Moniepoint, Jumia, and the rest. We want to once again reiterate that we are with you, we are for you, and we will stand by you,” he said.

Responding, AfDB President, Dr. Sidi Ould Tah, pledged support for Nigeria and outlined his vision of the bank as a catalyst for Africa’s transformation.

“Dr Sidi Ould Tah, assured that under his leadership, the bank will spare no effort to provide Nigeria with the support it deserves in terms of developing its human capital.

“My vision for the bank is not as a lending institution, but as a catalyst institution with which to mobilise resources and capital from all over the world to Africa. I hope we can really bring capital to the continent to make the transformation of our continent possible and bring value to the agricultural sector.

“This is why my four cardinal points are: mobilise large-scale capital through partnerships, reform Africa’s financial architecture, convert the continent’s demographic dividend into economic strength for job creation, and industrialise Africa by harnessing its natural resources to add value and build resilient infrastructure.

“These points form my roadmap to guide the bank’s strategy and accelerate Africa’s development, and I’m confident that with your support, the bank will be able to bring transformation to the continent,” the statement read