FG Secures AfDB Funding Boost for Second Phase of Agro-Industrial Zones

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The Federal Government has secured an enhanced funding commitment from the African Development Bank (AfDB) to roll out the second phase of the Special Agro-Industrial Processing Zones (SAPZ) project.

Vice President Kashim Shettima disclosed this on Monday via his official X handle, following a bilateral meeting with AfDB President Dr. Sidi Tah on the sidelines of the 80th Session of the United Nations General Assembly in New York last Friday.

According to him, the second phase will expand the project to 24 additional states, scaling up from the initial eight states and the Federal Capital Territory covered under Phase 1. The new phase is designed to deliver climate-resilient infrastructure and drive inclusive agro-industrial growth nationwide.

Shettima said the initiative aims to diversify Nigeria’s economy away from dependence on crude oil 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,” Shettima stated.

Nigeria is AfDB’s largest shareholder, with a portfolio of over $10 billion.

Background

Launched in 2022, the SAPZ is a flagship AfDB programme executed in partnership with the Federal Government, state governments, and development partners.

Phase 1, backed by a $300 million AfDB facility, covered the FCT and seven states: Cross River, Imo, Kaduna, Kano, Kwara, Ogun, and Oyo. The project established agro-industrial hubs to attract private sector investment, reduce post-harvest losses, improve farmers’ market access, and strengthen commodity value chains.

It also targeted improved food security and job creation for rural communities, particularly youths and women.

Outlook

With Phase 2 now set to span 24 states, the government expects the SAPZ programme to deepen Nigeria’s agricultural transformation, enhance export diversification, and position the country as a major player in regional and global food supply chains.