The Federal Government and the African Development Bank (AfDB) will on August 2 break ground for the Oyo State Special Agro-Industrial Processing Zone (SAPZ), a landmark project aimed at transforming Nigeria’s agricultural landscape. The event is scheduled to take place at the SAPZ Phase I site in Atan, Ijaiye, Akinyele Local Government Area.
In a statement released Thursday, the AfDB described the Oyo SAPZ as a key milestone in Nigeria’s broader strategy to drive rural industrialisation, strengthen food systems, and generate jobs through modern agro-processing infrastructure. The project is being supported by the Oyo State Government and a consortium of international development partners including the Islamic Development Bank (IsDB), the International Fund for Agricultural Development (IFAD), and the Africa Grow Together Fund.
Top government officials and AfDB President Akinwumi Adesina will lead the groundbreaking ceremony alongside representatives from the project’s partner institutions, reflecting high-level commitment to agricultural reform through targeted investments.
The Oyo SAPZ becomes the third to be launched under Phase I of the national SAPZ programme, following similar developments in Kaduna and Cross River States earlier in April. Its establishment marks a significant expansion of the initiative into Nigeria’s south-western region and reaffirms the country’s national agenda to modernise agriculture, empower rural communities, and boost food security.
Strategically located on 300 hectares of land close to the Lagos-Ibadan Railway corridor, the site is well positioned to benefit from efficient transport logistics, making it attractive for agro-investors and supply chain operators. The Oyo SAPZ is designed to unlock critical value chains in cassava, maize, poultry, and horticulture. The goal is to foster competitive agribusinesses, create sustainable employment, and improve market access for smallholder farmers.
The SAPZ programme, which represents the AfDB’s largest agricultural investment in Africa to date, is a flagship initiative under its Feed Africa High 5 development agenda. The total programme financing stands at $538 million, co-funded by the AfDB and its partners. It aims to transform rural zones into agro-industrial growth hubs by linking production, processing, and logistics in a single ecosystem.
According to the bank, the programme is not only a bold step toward addressing Nigeria’s food challenges but also a blueprint for scaling agricultural industrialisation across the continent. It reflects a growing emphasis on public-private partnerships and infrastructure-led rural development as tools for achieving inclusive economic growth.
The upcoming event also reinforces AfDB’s longstanding development partnership with Nigeria. With over five decades of collaboration and nearly $11 billion in total commitments, agriculture continues to be a cornerstone of AfDB’s support to the country.
As Nigeria moves to strengthen its agricultural value chains, projects like the Oyo SAPZ are seen as crucial platforms for reducing rural poverty, curbing food imports, and positioning agriculture as a viable engine of national economic diversification.
