In an effort to revolutionize Nigeria’s agricultural industry and combat food insecurity, the African Development Bank (AfDB) is scheduled to provide $2.2 billion in funds to establish Special Agro-Industrial Processing Zones (SAPZ) throughout the country.

During Channels Television’s 2024 End-of-Year Review, which had as its theme “Focus on the Agriculture Sector, Food Security, Research, and AfDB Investments,” AfDB, Nigeria Office Director General Abdul Kamara made the announcement. According to Kamara, the construction and mobilization will commence in a few states, and the disbursement would start in 2025. In particular, contracts will be signed starting in 2025, and in some states, mobilization and on-site construction will begin. Naturally, not every state will begin at the same time,” he said.

In order to improve food security and open up economic prospects, the fund is intended to support the growth of agro-industrial hubs, aggregation centers, and agricultural transformation initiatives. Although the SAPZ initiative was approved by the AfDB Board in 2021, Kamara claims that the necessity for agreements with the Federal Government and co-financiers, such as the Islamic Development Bank and the International Fund for Agricultural Development (IFAD), caused startup delays.

“A program, especially one of that size, must be signed with the Federal Government after it is approved. It must be signed with the co-financiers as well. According to Kamara, the Bank was forced to enlist the Islamic Development Bank and IFAD as co-financiers.

The Federal Capital Territory (FCT), Cross River, Ogun, Oyo, Kaduna, Kano, and Kwara are among the seven regions that the program will first focus on. In order to reduce procedures, Kamara emphasized continued cooperation with state governors. We are now having discussions and are releasing the bidding materials in each of the seven states in an effort to expedite the procedure. The project is accelerating, which is typical for extremely complicated projects, he stated.

The total amount of money offered for the SAPZ program reached $2.2 billion during the just-concluded African Investment Forum thanks to new commitments from lenders. “The value, give or take, what the Bank is putting in is roughly one billion dollars,” Kamara said, highlighting the AfDB’s leadership in securing international financial assistance for the project. Naturally, it will be more than that if you include what other people are contributing because, as conveners, we invite others.

Kamara compared the program to comparable successful initiatives in other areas and voiced hope for its revolutionary potential. He confirmed, “The SAPZ will take place and will deliver as much as we have seen elsewhere.”

He asserts that the SAPZ program is anticipated to solidify Nigeria’s standing as an African leader in agro-industrial development by greatly increasing agricultural output, generating employment, and fortifying value chains.