The African Development Bank (AfDB) has secured $2.2 billion in investment commitments to expand Special Agro-Industrial Processing Zones (SAPZs) across 28 states in Nigeria, in what is being billed as one of the continent’s most ambitious agricultural transformation efforts.
AfDB President Akinwumi Adesina made the announcement on Tuesday while inaugurating the first phase of the initiative in Kaduna State. The opening stage, which targets five states, is backed by an initial $520 million in funding, first disclosed in 2022.
“We have successfully mobilised $2.2 billion in investor interest to support the nationwide rollout of the second phase,” Adesina said during the launch. He added that formal funding requests would soon be submitted to the AfDB board for approval.
The SAPZ programme aims to shift agricultural processing closer to production zones, reducing post-harvest losses and boosting farm-to-market efficiency. The zones are also expected to catalyse rural development and attract agro-industrial investments.
Coalition of financiers
The funding drive has drawn support from a coalition of regional and international partners. Among them are the Arab Bank for Economic Development in Africa, Africa Export-Import Bank (Afreximbank), and Sahara Farms, an agri-focused fintech firm.
The collaboration signals a growing recognition that Africa’s food security depends not only on increased production but also on strengthening infrastructure and processing capacity within local economies.
Food import bill concerns
Nigeria’s dependence on food imports remains a pressing concern. In 2023 alone, the country spent $4.7 billion importing food, according to AfDB figures. The government, alongside its partners, hopes that increased domestic processing capacity will reverse this trend and create jobs in a country grappling with high youth unemployment.
The SAPZs are seen as a cornerstone of this shift. By positioning processing plants near farmlands, the model seeks to reduce the logistical and financial burden on smallholder farmers and encourage private-sector participation in rural agriculture.
As Nigeria’s population grows and climate pressures mount, analysts say the long-term success of initiatives like SAPZs could redefine the agricultural economy not just in Nigeria, but across West Africa.