Nigeria partners AfDB, others to kick-off $538 million Agro-Industrial processing zone

After around four years since its inception, the federal government has finally launched the first phase of the Special Agro-Industrial Processing Zones (SAPZ) Project in Kaduna in partnership with the African Development Bank (AfDB).

This program is a component of a larger plan to improve agricultural techniques and combat food poverty in the country.


Nigeria's Minister of Agriculture and Food Security, Abubakar Kyari, referred to the SAPZ project as a revolutionary approach to agro-industrialization in the nation during his remarks at the groundbreaking ceremony on Wednesday in Kaduna.

"Under the Renewed Hope of our dear President Bola Tinubu, this program is set to transform the way we approach agriculture and agro-industrial development in Nigeria," he stated.
 

He said the project would be a game changer in the history of Nigerian Agriculture and that it is a dedicated agro-processing area within major food production clusters equipped with desirable ultra-modern infrastructure to attract private sector investment into modern agricultural processing of locally produced crops, livestock and other related agricultural activities.

SAPZ is one of AfDB’s ambitious initiatives that will be implemented across at least 18 African countries, including Nigeria. According to the bank, the project areas account for 19 of Nigeria’s total land mass and will benefit 50.4 million people.

It stated that the states in which the program's initial phase will be carried out were chosen in accordance with readiness standards and the requirement to maintain geographic balance among Nigeria's six geopolitical zones.

Accordingly, during the administration of former President Muhammadu Buhari, who succeeded Mr. Tinubu, the AfDB began the SAPZ initiative in Nigeria in September 2021 in collaboration with the federal government and other developing partners. With six states selected for the first phase, the program's main goal is to increase food production nationwide.

The AfDB board of directors authorized a $210 million loan for the project by December 2021. It stated at the time that Phase 1 of the SAPZ project in Nigeria will be co-financed by the loan.

The loan comprises an AfDB loan of $160 million and an Africa Growing Together Fund loan of $50 million.

According to the program guidelines, large farming clusters will be set up across the country and also seek to ensure farmers at the grassroots get access to extension services, including mechanised farming and training on the use and maintenance of modern equipment by establishing centres across the 774 Local Governments.