African Development Bank Group and Nigeria Launch $538 Million Agro-Industrial Project Across Eight States
Nigeria’s food and agriculture sector is set to enter a new era of industrialization with the launch of the first phase of the Special Agro-Industrial Processing Zones (SAPZ) program, a joint initiative by the Nigerian government, the African Development Bank (AfDB), and the Kaduna State government.
The groundbreaking ceremony will take place in Kaduna on Tuesday, April 8, 2025, with special guest Akinwumi Adesina, President of the African Development Bank Group, in attendance alongside Nigerian Vice President Kashim Shettima and Kaduna State Governor Uba Sani. Following the event, Adesina will travel to Cross River State, where a second groundbreaking ceremony will be held with federal government representatives and Governor Bassey Edet Otu.
A $538 Million Boost for Nigeria’s Agro-Industrial Transformation
The first phase of the SAPZ program, valued at 538million,willcovereightstates:Kaduna,Kano,Kwara,CrossRiver,Imo,Ogun,Oyo,andtheFederalCapitalTerritory(FCT).Launchedin2022witha210 million investment from the AfDB, the initiative also receives support from the Islamic Development Bank, the International Fund for Agricultural Development, and ARISE Integrated Industrial Platforms (ARISE IIP).
The SAPZ program aims to enhance Nigeria’s food production, reduce imports, create youth employment, preserve foreign exchange reserves, and transform struggling rural areas into thriving economic hubs.
Reducing Food Imports and Strengthening Local Production
In 2024, Nigeria imported $4.7 billion worth of food. The SAPZ program seeks to reverse this trend by unlocking local production potential and strengthening nationwide agro-industrial value chains.
Key expected outcomes include:
- A more than 60% increase in agricultural productivity
- Reduced post-harvest losses
- Enhanced farm-to-market value chains
Kaduna and Cross River will host agro-industrial hubs, agricultural processing centers, and production zone aggregation centers—critical components of the program.
Job Creation and Strategic Site Selection
The SAPZ program has the potential to generate over 60,000 jobs per participating state. Site selection was based on agricultural potential, infrastructure availability, and strategic geographic positioning to maximize contributions to Nigeria’s agro-industrial growth.
- Kaduna State will focus on maize, soybeans, ginger, and tomatoes.
- Cross River State will leverage its cocoa, cassava, and rice production.
Notably, the SAPZ sites in both states are located near major universities—Ahmadu Bello University in Kaduna and the University of Calabar in Cross River—ensuring access to research, innovation, and skilled human capital to drive agro-industrial transformation.
High-Level Participation and Private Sector Opportunities
Several state governors, federal officials, and development partners will attend the two groundbreaking ceremonies. With 37% of the AfDB’s $5.1 billion portfolio in Nigeria dedicated to private sector initiatives, the country offers substantial partnership opportunities in its ongoing development.
This landmark initiative marks a significant step toward Nigeria’s agricultural self-sufficiency and economic diversification, positioning the nation as a leader in Africa’s agro-industrial revolution.