24 States To Benefit As FG Secures AfDB Support For SAPZ Initiative

Vice President Kashim Shettima has announced that the Federal Government of Nigeria and the African Development Bank (AfDB) have agreed to scale up the Special Agro-Industrial Processing Zones (SAPZ) programme to a second phase that will cover 24 additional states across the country.

The announcement was made on Monday through a post on his official 𝕏 handle, in which the Vice President revealed 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 (UNGA) in New York last Friday.

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Shettima explained that the second phase of the project is designed to expand beyond the eight states and the Federal Capital Territory (FCT) that benefitted from the first phase. He noted that this new stage of the programme will focus on climate-resilient infrastructure and inclusive agro-industrial growth, with the ultimate goal of diversifying Nigeria’s economy away from overdependence on crude oil exports and into agriculture, particularly value-added agricultural exports.

In his appeal to the AfDB President, Shettima emphasised the importance of increased support for the programme. “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. He also reminded the AfDB that Nigeria remains its largest shareholder, with a portfolio of more than $10 billion, underscoring the country’s strategic importance to the bank’s regional operations.

The SAPZ initiative, first launched in 2022, is a flagship programme of the AfDB in collaboration with the Nigerian government, state governments, and development partners. Its first phase, backed by a $300 million AfDB facility, was implemented in the FCT and seven states—Cross River, Imo, Kaduna, Kano, Kwara, Ogun, and Oyo. That phase focused on the creation of agro-industrial hubs designed to attract private sector investment, reduce post-harvest losses, and improve market access for smallholder farmers. It also strengthened value chains in strategic commodities, enhanced food security, and generated thousands of jobs, particularly for rural communities, youths, and women who play critical roles in Nigeria’s agricultural workforce.

The success of the first phase has set the stage for the broader roll-out planned in the second phase. According to Shettima, Phase 2 of the SAPZ programme will not only extend to 24 additional states but will also integrate climate-smart agricultural practices. This expansion is intended to bolster Nigeria’s food security, boost export competitiveness, and establish the country as a leading agricultural hub in Africa. The Vice President stressed that the government’s vision for the SAPZ programme is to create investment-ready agro-industrial zones that can attract local and international investors while addressing environmental sustainability concerns.

He pointed out that agriculture remains central to Nigeria’s economic transformation agenda. With the country’s large population and vast arable land, the sector has immense potential to drive diversification, reduce reliance on food imports, and enhance the nation’s foreign exchange earnings through value-added exports. Shettima further emphasised that the SAPZ model, which integrates production, processing, and market access within industrial clusters, is uniquely positioned to address long-standing structural issues in Nigeria’s agricultural value chains.

Analysts note that the first phase of SAPZ had already recorded significant achievements, particularly in reducing post-harvest losses, a challenge that has historically undermined smallholder farmers’ incomes. By connecting farmers to processing facilities and modern storage systems, the programme helped increase productivity while reducing waste. The new phase aims to replicate these gains on a wider scale, providing opportunities for more states to benefit from modern agro-industrial infrastructure and enhanced value chain development.

For rural communities, especially women and young people, the programme is expected to generate sustainable job opportunities. Shettima highlighted that empowering these groups remains a key government priority, given their vulnerability to poverty and unemployment. By expanding the SAPZ programme, the government hopes to integrate more Nigerians into productive activities while reducing poverty levels in line with its broader economic and social development goals.

The Vice President also linked the programme to Nigeria’s climate resilience agenda. He stressed that the second phase would place a strong emphasis on climate-smart practices, ensuring that agricultural growth does not come at the expense of environmental sustainability. This aligns with Nigeria’s commitments under global climate agreements and the need to adapt to the growing impacts of climate change on food production systems.

Development partners have welcomed the SAPZ initiative as a model that can transform Africa’s agricultural sector. By bringing together public and private stakeholders, the programme is seen as a pathway to achieving food self-sufficiency, improving rural livelihoods, and boosting the continent’s position in global food supply chains. For Nigeria, the initiative comes at a critical time, as the country grapples with economic challenges, including high inflation, foreign exchange shortages, and dependence on crude oil revenues.

By investing in agro-industrial processing zones, Nigeria aims not only to improve food availability and affordability but also to stimulate industrialisation through agro-processing. This could reduce the country’s reliance on imported food products while creating opportunities for export-driven growth.

As preparations for the second phase progress, the government is expected to work closely with state governments, development partners, and private investors to ensure smooth implementation. The ultimate success of the programme will depend on adequate financing, robust infrastructure, effective policy frameworks, and strong stakeholder collaboration.

Vice President Shettima’s appeal to the AfDB underscores the importance of sustained financial and technical support to achieve these objectives. With Nigeria serving as the bank’s largest shareholder, the partnership is strategically significant for both sides. For Nigeria, securing additional support will be crucial to expanding the programme nationwide and realising its vision of an agriculturally diversified economy. For the AfDB, backing Nigeria’s SAPZ initiative reaffirms its commitment to driving Africa’s agricultural transformation.

If successfully implemented, the second phase of the SAPZ programme could mark a turning point in Nigeria’s economic trajectory, positioning the country as a key player in global agricultural exports while creating inclusive growth opportunities for millions of its citizens.