Nigeria Set to Benefit from $4.4 Billion Investment in Agro-Industrial Zones
The African Development Bank (AfDB) has announced a significant $4.4 billion investment aimed at expanding the Special Agro-Industrial Processing Zones (SAPZ) across Nigeria. The initiative will cover all 36 states and the Federal Capital Territory, fostering economic growth through the transformation of the agricultural sector. AfDB President Akinwumi Adesina emphasized that agricultural transformation is essential for broader economic development and must address the grassroots level, where it has the most impact.
The SAPZ program, which was launched in 2022, aims to establish agro-processing hubs designed to enhance agricultural productivity, reduce post-harvest losses, and create jobs in rural areas. The focus of these zones will be on boosting value addition to agricultural products by providing necessary infrastructure such as power, water, roads, digital connectivity, and irrigation systems. These zones will attract agro-processing companies, offering a market for raw materials and stimulating rural economies.
Adesina also highlighted that the SAPZ initiative would help Nigeria reduce its dependency on urban areas for the processing of raw agricultural commodities. The project aims to create a new economic ecosystem in rural communities, generating wealth and employment opportunities for local farmers and businesses. The AfDB has already committed over $3 billion to similar projects across 11 African countries, with Nigeria’s project growing from an initial $750 million target to a staggering $4.4 billion.
The success of this model in other African nations has bolstered confidence in its potential for Nigeria. Adesina is optimistic that the SAPZ initiative will help the country overcome infrastructure challenges, promote local processing, and enhance agricultural competitiveness, contributing to sustainable economic growth and development in rural regions.
Source: Punch