AfDB Pledges $86m to Boost Nigeria Agro-Industrial Zones as SAPZ Gains Fresh Funding Momentum

The African Development Bank (AfDB) has pledged $86 million to support Nigeria’s Special Agro-Industrial Processing Zones (SAPZ) programme, a major push aimed at transforming agriculture through industrial clusters, improved value chains, and private sector investment. The announcement was made during a mid-term review meeting in Abuja, signaling renewed momentum for one of Nigeria’s flagship agricultural initiatives.

The SAPZ programme is designed to tackle long-standing challenges in Nigeria’s agricultural sector, including post-harvest losses, low productivity, and weak access to markets. By concentrating farming, processing, storage, and distribution within designated agro-industrial hubs, the initiative aims to boost efficiency while creating jobs and attracting investment into rural economies.

According to project updates shared at the meeting, SAPZ Phase I—approved in December 2021 and effective from March 2023—has recorded a 41 percent commitment rate and a 12 percent disbursement rate, equivalent to about $25 million. The AfDB expects performance to improve significantly, projecting 70 percent commitment and 35 percent disbursement by the end of 2026 as implementation accelerates.

Other development partners are also increasing their support. The International Fund for Agricultural Development (IFAD) has approved an additional $50 million, bringing its total commitment to $100 million. The organisation reported that more than 17,000 smallholder farmers across Kano and Ogun states have already benefited from climate advisory services, improved inputs, and better market linkages under the programme.

With SAPZ currently active in Kano, Imo, Kaduna, Cross River, Kwara, Oyo, Ogun, and the Federal Capital Territory, stakeholders say the initiative is beginning to reshape rural agribusiness. The federal government has also indicated plans to expand the programme into more states under a second phase, while AfDB’s wider investment portfolio in Nigeria has now grown to $6.2 billion across 53 operations, reflecting deepening development cooperation.

source: Leadership