Nigeria to Benefit from $4.4bn Agro-Industrial Investment, Says AfDB President
Nigeria is set to benefit from a $4.4bn investment aimed at expanding Special Agro-Industrial Processing Zones (SAPZs) across all 36 states and the Federal Capital Territory, the President of the African Development Bank (AfDB), Akinwumi Adesina, has revealed.
In an interview with Arise TV on Monday, Adesina underscored the importance of agricultural transformation in driving broader economic growth, stating that the initiative would be a game-changer for rural economies.
“Transformation without agricultural transformation is incomplete because agriculture touches the lives of people at the grassroots level,” he said.
Bridging Infrastructure Gaps to Boost Agro-Processing
The SAPZ programme, launched in 2022, is designed to revolutionise Nigeria’s agricultural sector by establishing high-capacity agro-processing clusters. These zones will be strategically located close to farming communities and will feature essential infrastructure, including power, water, roads, digital connectivity, and irrigation systems.
Adesina explained that the goal is to attract agro-processing companies to these hubs, reducing post-harvest losses and creating thousands of 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,” he noted.
The AfDB has already committed over $3bn to SAPZ projects across 11 African countries. Initially, Nigeria’s SAPZ programme was targeted to raise $750m, but the figure surged to $2.2bn before reaching the current $4.4bn milestone.
“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,” Adesina revealed.
A Bold Step Towards Agro-Industrialisation
Adesina emphasised that SAPZs will help Nigeria shift from exporting raw commodities to processing agricultural produce locally, addressing long-standing infrastructure deficits that have hindered value addition.
The model, which has already shown success in several African nations, is expected to deliver substantial economic benefits, reduce reliance on food imports, and enhance Nigeria’s position as an agro-industrial hub.
“This model is already working successfully in several African countries, and I have no doubt it will succeed in Nigeria,” Adesina concluded.
With agriculture remaining a cornerstone of Nigeria’s economy, the SAPZ initiative represents one of the most significant investments in the sector, promising to transform farming communities into hubs of industrial productivity.
About The Author
