AfDB Mobilizes $2.2 Billion for Nigeria's Special Agro-Industrial Processing Zones Phase II Project

“This is a defining moment for Nigeria's agricultural transformation,” remarked Dr. Akinwumi A. Adesina, President of the African Development Bank Group.

The African Development Bank Group (AfDB) has successfully facilitated the mobilization of $2.2 billion in capital for Nigeria's transformative Special Agro-Industrial Processing Zones (SAPZ) Phase II project during the Africa Investment Forum. This funding marks a pivotal moment in the development of Nigeria's agricultural sector and its efforts to drive economic transformation.

On December 4th, 2024, a packed presidential boardroom in Nigeria saw the attendance of key stakeholders, including Nigerian State governors, leaders from multilateral organizations, diplomats, and private sector investors. They all pledged their support to scale up financing for the SAPZ initiative, a government-led and private-sector-driven investment program that aims to establish agro-industrial hubs across Nigeria. These hubs are designed to boost productivity, enhance food security, create jobs, and raise the standard of living for millions of Nigerians.

A Defining Moment for Nigeria’s Agricultural Transformation

“This is a defining moment for Nigeria's agricultural transformation,” remarked Dr. Akinwumi A. Adesina, President of the African Development Bank Group. He emphasized that the SAPZ Phase II project will generate millions of jobs, empower smallholder farmers, and position Nigeria as a leader in agro-industrialization. “These investments exemplify the power of collaboration to achieve sustainable development in Africa,” he added.

Phase I Achievements and Phase II Expansion Plans

The SAPZ program is aimed at fostering the integration of agriculture and industrial businesses by providing necessary infrastructure and policy incentives. Phase I of the program has already started benefiting Nigerian states, including Cross River, Imo, Ogun, Oyo, Kaduna, Kwara, and Kano, as well as the Federal Capital Territory. Moving forward, SAPZ Phase II will expand to an additional 24 Nigerian states over the next three years.

Key aspects of the project include the development of agro-industrial zones with critical infrastructure, strengthened institutional capacity, and enhanced agricultural productivity across various value chains. By establishing these zones in areas with high agricultural production potential, SAPZ will foster value-added manufacturing and contribute to the long-overdue structural transformation of Nigeria’s rural areas, significantly enhancing food security, employment, and trade.

Collaboration Across the Public and Private Sectors

The collaboration between the African Development Bank and its partners, including international development organizations, private sector investors, and Nigerian state governors, is critical to the success of this initiative. The SAPZ Phase II project is backed by major financial institutions, including Arise IIP, Arab Bank for Economic Development in Africa, Africa Export-Import Bank, Sahara Farms, BPI France, Africa50, and the U.S. Development Finance Corporation.

At the event, Princess Zahrah Mustapha Audu, Adviser to Nigeria’s President Bola Tinubu on Foreign Direct Investment, expressed Nigeria’s commitment to fostering a conducive environment for the initiative. Governors and commissioners from key states, such as Katsina, Kaduna, Lagos, Kwara, Plateau, and others, emphasized their progress in land allocation, infrastructure readiness, and policy facilitation to support the project’s successful rollout.

Investing in Nigeria's Future

Dr. Abdul B. Kamara, Director General for Nigeria at the African Development Bank, expressed his satisfaction with the scale of investment commitments, particularly at a time when Nigeria is ramping up efforts to attract more investments into its agriculture sector. These efforts are critical for addressing food security, job creation, and boosting Nigeria's economic growth.

The SAPZ Phase II project exemplifies the African Development Bank’s continued commitment to driving inclusive growth across Africa. By mobilizing large-scale investments and fostering public-private partnerships, the initiative aims to accelerate Nigeria’s agro-industrialization, improve livelihoods, and enhance food security for millions of citizens.