FG to boost agro-industrial zones with new AfDB funding

By Omodele Adigun

Nigeria’s agro-industrial sector is set for a major boost as the Federal Government secured enhanced funding from the African Development Bank (AfDB) for the second phase of the Special Agro-Industrial Processing Zones initiative.

This was made known by Vice President Kashim Shettima in a post on his official X handle on Monday.

The Vice President disclosed that the agreement was reached during a bilateral meeting with AfDB President, Dr. Sidi Tah, on the sidelines of the 80th Session of the United Nations General Assembly in New York last Friday.

Scaling up its impact, the second phase of the SAPZ project will focus on developing climate-resilient infrastructure and promoting inclusive agro-industrial growth in 24 new states, broadening its coverage beyond the initial phase.

He stated that the second phase of the SAPZ project is designed to scale up climate-resilient infrastructure and drive inclusive agro-industrial growth across 24 additional states, expanding beyond the initial eight states and the Federal Capital Territory covered in the first phase.

In addition, the Vice President stressed that the programme aims to diversify Nigeria’s mono-product economy by boosting value-added agricultural exports.

Justifying Nigeria’s request for more support, Shettima said the country remains the AfDB’s largest shareholder with a portfolio of over $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,” he said.

The SAPZ initiative, launched in 2022, is a flagship programme of the AfDB in partnership with the Federal Government, state governments, and development partners.

The first phase, implemented in the Federal Capital Territory and seven states — Cross River, Imo, Kaduna, Kano, Kwara, Ogun, and Oyo — was backed by a $300 million AfDB facility.

The project created agro-industrial hubs aimed at attracting private sector investment into agro-processing, reducing post-harvest losses, and improving market access for smallholder farmers.

It also sought to strengthen value chains in key commodities, enhance food security, and create jobs for rural communities, particularly youths and women.

aWith Phase 2 now set to cover 24 more states, it is expected that the initiative will deepen Nigeria’s agricultural transformation, promote export diversification, and position the country as a key player in regional and global food supply chains.