The Federal Government has secured a renewed funding commitment from the African Development Bank (AfDB) to expand the second phase of the Special Agro-Industrial Processing Zones (SAPZ) project, extending it to 24 additional states beyond the initial seven and the Federal Capital Territory.
The pledge followed a meeting between Vice President Kashim Shettima and AfDB President Dr. Sidi Ould Tah in New York on the sidelines of the 80th United Nations General Assembly (UNGA). According to a statement from the Office of the Vice President, the renewed support underscores AfDB’s confidence in the SAPZ initiative, which was launched in October 2022 and designed to transform Nigeria’s agricultural landscape.
The first phase of SAPZ, launched under former Vice President Yemi Osinbajo, targeted Kano, Imo, Kaduna, Cross River, Kwara, Oyo, Ogun, and the FCT. It was backed by $210 million from AfDB, $310 million from the Islamic Development Bank (IsDB) and IFAD, alongside an $18.05 million contribution from the Nigerian government. The initiative aims to attract large-scale private sector investment into crop and livestock value chains, reduce Nigeria’s food import bill, boost agricultural exports, create millions of jobs, and revive dormant agro-industrial assets.
During the meeting, Shettima urged AfDB to deepen its involvement in the programme, stressing that Nigeria intends to diversify its economy from oil dependence to value-added agricultural exports. Highlighting the country’s vast agro-ecological potential from the mangrove swamps in the south to the Sahelian zone in the north, he said Nigeria could grow virtually any crop and harness agriculture to drive inclusive growth.
The Vice President also emphasised Nigeria’s youthful and resourceful population, calling for AfDB’s support in fostering innovation-driven enterprises and strengthening the digital economy. He noted that five of Africa’s eight unicorn companies are Nigerian, pointing to the country’s potential to catalyse digital transformation across the continent.
Responding, AfDB President Dr. Sidi Ould Tah reaffirmed the bank’s commitment to Nigeria, describing AfDB not merely as a lender but as a catalyst for Africa’s transformation. He outlined his strategic roadmap focused on mobilising large-scale capital through partnerships, reforming Africa’s financial architecture, converting its demographic dividend into economic strength, and industrialising the continent by adding value to natural resources and building resilient infrastructure.
Nigeria’s Minister of Environment, Mallam Balarabe Lawal, also appealed to AfDB to extend support to the Pan African Great Green Wall Initiative to combat desertification and deforestation in Nigeria’s Sahelian region. He linked this effort to the country’s clean cooking policy proposal, which aims to address both environmental degradation and public health concerns.
Similarly, Minister of Housing and Urban Development, Alhaji Ahmed Dangiwa, called for AfDB’s intervention in bridging Nigeria’s housing deficit, highlighting the urgent need for investment in affordable housing and urban infrastructure.
For MSMEs, the expansion of SAPZ holds significant potential. By improving access to agro-industrial infrastructure, creating value-added supply chains, and boosting local production, the initiative can lower raw material costs, unlock new market opportunities, and strengthen business linkages for small enterprises. As the programme scales up nationwide, it is expected to drive inclusive growth, support rural economies, and position agriculture as a key engine of Nigeria’s economic diversification.
