The Federal Government aims to attract $1 billion in agricultural investments and create 500,000 jobs by 2027 through the Special Agro-Industrial Processing Zones (SAPZ) Programme, according to a SAPZ Fact Sheet.
In collaboration with major development finance institutions such as the African Development Bank (AfDB), the International Fund for Agricultural Development (IFAD), and the Islamic Development Bank (IsDB), the government has launched the first phase of the SAPZ in seven states.
This initial phase, SAPZ-1, is currently being rolled out in Cross River, Imo, Ogun, Oyo, Kaduna, Kano, and Kwara states. The goal is to generate $1 billion in private sector investment through agro-processing hubs and agricultural transformation centres while creating 500,000 jobs, categorized by age group and gender.
The National Programme Coordinator for SAPZ, Dr. Kabir Yusuf, outlined that the government plans to rehabilitate 190 feeder roads at the farm level, which will help reduce post-harvest losses in these areas. Additionally, 100,000 farmers are expected to receive training in climate-smart agricultural practices by 2027. The total cost of SAPZ-1 is projected at $538.05 million, excluding taxes.
According to the fact sheet, “The AfDB will contribute $160 million in loans (29.7% of the total cost), along with a $50 million loan (9.3%) from the Africa Growing Together Fund. The IsDB and IFAD will co-finance $150 million (27.9%) and $100 million (18.6%), respectively.
“Further funds amounting to $60 million (11.1%) will be sourced from the Green Climate Fund through IFAD’s IGREENFIN initiative. The Federal and State Governments will contribute $18.05 million (3.4%) in both cash and kind.”
The AfDB is funding all SAPZ-1 programme components in Ogun, Oyo, Kaduna, Cross River, and Imo States. Under parallel co-financing, IFAD will support Component 2 in Kano and Ogun States, covering related management costs. IsDB will fund activities in Kano, Kwara, and the Federal Capital Territory across all programme components.
Meanwhile, state governments have vowed to tackle food insecurity in Nigeria. During a Special Agro-Industrial Processing Zones High-Level Implementation Acceleration Dialogue hosted by the African Development Bank, state leaders reiterated their commitment to transforming the nation’s agricultural sector despite bureaucratic hurdles.
Prof. Banji Oyelaran, Senior Special Advisor to the President of AfDB on industrialisation, identified human-related challenges as the primary barrier to project execution. “The biggest obstacles we face aren’t technical but human,” he said, noting how bureaucratic delays and personal egos often slow down crucial initiatives. “It can take nine months to resolve issues caused by one person’s unwillingness to act.”
Oyelaran further elaborated on the SAPZ initiative, designed to localise agricultural development and enhance productivity. Despite securing over $540 million for the first phase, he warned that delays in fund disbursement could hinder progress. “No one will provide additional financing if the initial funds aren’t efficiently utilised,” he remarked.
He emphasized the importance of educating farmers on best practices, saying, “Knowledge is essential. Farmers need to understand when and how to plant to succeed.”
While challenges remain, Oyelaran expressed optimism, urging stakeholders to follow project guidelines and setting a December 20 deadline for compliance. “Anyone unwilling to follow the rules should step aside, or we will cancel their participation,” he warned.
He envisioned SAPZ as a game-changer for Nigeria’s economy, stating, “Imagine a single site employing 25,000 people, and replicating that across the country.”
Dr. Kabir Yusuf, the national coordinator of SAPZ, shared this optimism, highlighting the programme’s potential to diversify the Nigerian economy by positioning agriculture as a business opportunity, rather than merely a livelihood.
Sadi Ibrahim, Permanent Secretary of the Kano State Ministry of Agriculture, acknowledged the need to follow legal regulations, describing them as a significant bottleneck. “It’s crucial we comply with these guidelines to ensure successful implementation in our state,” he said, pledging to mobilise resources to meet targets.
Adebowale Akande, Executive Adviser on Agribusiness in Oyo State, noted the state’s focus on agricultural industrialisation. “We believe SAPZ will help us achieve our goal of industrialising agriculture,” he said, emphasizing the importance of value addition to local produce.
Akande also pointed out that environmental impact assessments and community engagement are integral to ensuring the project’s sustainability.
Kaduna State’s Commissioner for Agriculture, Murtala Dabo, stressed SAPZ’s role in boosting the export value of agricultural products. “The programme will create industrial hubs to process agro-produce, allowing smallholder farmers to benefit,” he said.
Dabo added that industries could process crops like ginger and cocoa, enhancing both farmers’ livelihoods and the national economy.
