AfDB’s $2.2 Billion Agro-Industrial Zones: Transforming Nigeria’s Agriculture
The African Development Bank (AfDB) has unveiled a major plan to boost Nigeria’s agricultural sector by committing $2.2 billion to establish Special Agro-Industrial Processing Zones (SAPZ). Starting in 2025, these funds will support construction and mobilization efforts in seven key regions: the Federal Capital Territory (FCT), Cross River, Ogun, Oyo, Kaduna, Kano, and Kwara states.
This initiative is designed to transform the agricultural landscape by creating hubs for agro-industrial activities. It includes the development of aggregation centers and value chain programs, aiming to improve food security, stimulate economic growth, and open opportunities for businesses, especially small and medium enterprises (SMEs). Through these efforts, the project hopes to generate jobs, increase agricultural output, and position Nigeria as a leader in agro-industrial development across Africa.
Originally approved in 2021, the project faced delays while agreements with the federal government and other financiers, including the International Fund for Agricultural Development (IFAD) and the Islamic Development Bank (IsDB), were finalized. With these agreements now secured, preparations for implementation, such as finalizing bidding documents, are underway.
For SMEs and MSMEs in Nigeria, the SAPZ project is set to provide essential infrastructure and access to integrated value chains. This represents an opportunity for growth, improved competitiveness, and increased productivity in the agricultural sector.
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