24 States To Benefit As FG Secures AfDB Support For SAPZ Initiative

Sunnex Egbu

3 hours ago

The Federal Government has secured enhanced funding from the African Development Bank (AfDB) to kick-start the second phase of the Special Agro-Industrial Processing Zones (SAPZ) initiative.

Vice President Kashim Shettima disclosed this on Monday in a post on his official 𝕏 handle, noting that the agreement was reached during a bilateral meeting with AfDB President, Dr Sidi Tah, on the sidelines of the 80th Session of the United Nations General Assembly (UNGA) in New York last Friday.

Shettima explained that the second phase of the project is designed to scale up climate-resilient infrastructure and drive inclusive agro-industrial growth across 24 additional states, expanding beyond the eight states and the Federal Capital Territory (FCT) covered in the first phase.

He said the programme aims to diversify Nigeria’s mono-product economy by boosting value-added agricultural exports.

“We urge you to further support us in the Phase 2 Special Agro-Industrial Processing Zones (SAPZ). You assisted us with $300 million when you were in Liberia. We want to thank you, but like Oliver Twist, we are asking for more because we are poised to diversify our mono-product economy into agriculture, especially value-added agricultural export,” Shettima told AfDB President.

The Vice President reminded the AfDB that Nigeria remains its largest shareholder with a portfolio of more than $10bn.

First Phase Backed by $300m

Naijaonpoint reports that the SAPZ initiative, launched in 2022, is a flagship programme of the AfDB in partnership with the Federal Government, state governments, and development partners.

Its first phase, implemented in the FCT and seven states, Cross River, Imo, Kaduna, Kano, Kwara, Ogun, and Oyo, was backed by a $300m AfDB facility.

That phase established agro-industrial hubs aimed at attracting private sector investment, reducing post-harvest losses, and improving market access for smallholder farmers.

It also strengthened value chains in key commodities, boosted food security, and created thousands of jobs for rural communities, particularly for youths and women.

With the second phase set to extend to 24 more states, the Federal Government says the initiative will deepen Nigeria’s agricultural transformation, promote export diversification, and position the country as a key player in both regional and global food supply chains.

Shettima emphasised that the government’s focus is on creating climate-smart, investment-ready agro-industrial zones that will lift millions of Nigerians out of poverty and generate sustainable jobs.