The African Development Bank (AfDB) has announced the disbursement of $540 million to support the development of Special Agro-Industrial Processing Zones (SAPZs) in Nigeria. The fund is part of the bank’s initiative to transform rural areas into economic hubs of prosperity and harness the power of commercial agriculture and food processing.
The first phase of the fund will benefit three states – Oyo, Kaduna, and Cross River – which have met the eligibility criteria set by the bank. These include having a feasibility report, an environmental impact study, and a commitment to counterpart funding. The fund will be used to upgrade infrastructure, provide equipment, and facilitate access to finance and markets for the SAPZs.
The SAPZs are expected to create jobs, increase incomes, and improve food security for millions of Nigerians. They will also attract private sector investment and foster linkages between farmers, processors, and distributors. The bank’s Senior Special Adviser on Industrialisation, Prof. Banji Oyelaran-Oyeyinka, said the SAPZs are “a government-enabled, private-sector-driven initiative” that will boost inclusive and sustainable agro-industrial development in Nigeria.
The bank plans to implement the second phase of the fund in 27 states, prioritizing those that show readiness and progress. The bank has also partnered with the United Nations Industrial Development Organisation (UNIDO) to provide technical assistance and capacity building for the SAPZs.
Vice President of Nigeria, Kashim Shettima, welcomed the fund and urged the government and its development partners to “walk the talk” and deliver on the vision of President Bola Ahmed Tinubu. He said the fund is a timely intervention that will help Nigeria achieve its economic diversification and transformation goals.
