Nigeria’s Special Agro-industrial Processing Zones Phase II, boosted with a whopping $2.2 bn investment interest at AIF 2024
The African Development Bank Group facilitated $2.2 billion in capital mobilization for its transformative Special Agro-Industrial Processing Zones Nigeria Phase II project during the Africa Investment Forum.
At a packed presidential boardroom on Wednesday 4th December, governors from Nigerian States, leaders from multilateral development organizations, the diplomatic corps as well as private sector investors expressed support to scaling up financing to Federal and State Governments of Nigeria connected to the Special Agro-Industrial Processing Zones (SAPZ) Nigeria initiative. This ambitious initiative is set to revolutionize Nigeria’s agricultural sector. Building on phase I, it is intended to create agro-industrial hubs that drive productivity, enhance food security, raise living standards and create jobs.
“This is a defining moment for Nigeria’s agricultural transformation,” said African Development Bank Group President Dr. Akinwumi A. Adesina, during the boardroom. “The Nigeria SAPZ II project will create millions of jobs, empower smallholder farmers, and position Nigeria as a leader in agro-industrialization. These investments exemplify the power of collaboration to achieve sustainable development in Africa,” he added.
The SAPZ Nigeria Program is a country-wide government-enabled and private-sector-led investment program that will, (i) provide infrastructure for the establishment of agro-industrial zones, (ii) strengthen institutional capacity and business environment for agro-industrial development and (iii) support agricultural productivity, skills, and private investment across value chains.
SAPZs are established in areas with high agricultural production potential. They are provided with infrastructure, common services, and supported by policy incentives to integrate agricultural and industrial businesses. Through value-added manufacturing, they have the potential to trigger the long-delayed structural transformation that revitalizes rural areas, enhance food security, improve employment, and boost regional and international trade.
Phase I Nigerian States benefiting from the program are Cross River, Imo, Ogun, Oyo, Kaduna, Kwara and Kano, and the Federal Capital Territory. SAPZ Nigeria Phase II is underway to expand to an additional 24 States in Nigeria in the next 3 yearsand will link Nigeria’s agriculture to agro-industrialization to drive economic growth.
Bank Vice President for Agriculture, Human and Social Development, Dr. Beth Dunford, chaired the presidential boardroom that also featured opening remarks from Bank President Dr. Akinwumi A. Adesina and his Senior Special Adviser on Industrialization, Professor Banji Oyelaran-Oyeyinka. They highlighted the achievements of Phase I and presented the roadmap for Phase II. Prof. Oyelaran-Oyeyinka assured the audience that phase 1 construction will commence in few months. A flagoff ceremony is planned for this December.
Princess Zahrah Mustapha Audu, Adviser to Nigeria’s President Bola Tinubu on Foreign Direct Investment, representing Nigeria’s Vice President, and the Governors of Katsina, Kaduna, Lagos, Kwara, Plateau States participated in the Boardroom, as well as commissioners and other representatives from Kogi, Gombe, Kebbi, Imo, Anambra, and Niger States. They reaffirmed their commitment to creating a conducive environment for the initiative, highlighting progress in land allocation, infrastructure readiness, and policy facilitation at the federal and state levels.
Leading investors, such as Arise IIP, Arab Bank for Economic Development in Africa, Africa Export-Import Bank, Sahara Farms, BPI France, Africa50, and the U.S. Development Finance Corporation also attended the Boardroom. At the end of the session, organizers announced a total deal value of $2.2 billion, marking a significant step toward realizing the vision of SAPZ Nigeria phase II.
“I am pleased to see this whopping investment interest and commitments by our financing partners for Nigeria, at a time when the country is ramping up efforts to attract investments into the agriculture sector to address food security, create job opportunities and boost economic growth,” said Dr. Abdul B. Kamara, the Bank’s Director General for Nigeria.
The African Development Bank Group continues to champion innovative solutions that drive inclusive growth across the continent. The Nigeria SAPZ II project demonstrates the Bank’s commitment to leveraging partnerships for large-scale, impactful development initiatives.
