The Nigerian government has called on international development partners to co-finance phase two of the Special Agro-Industrial Processing Zone known as SAPZ-2 programme to accelerate the implementation of the initiative for agro-industrial growth in the country.
This is just as Vice President Kashim Shettima has described the project as a game changer for the nation’s economy, saying accelerated implementation plan for phase one and the on-boarding of the phase-two states will enable the administration of President Bola Ahmed Tinubu to actualize its food security agenda.
The Nigeria Special Agro Industrial Processing Zones (SAPZ) programme aims to create new hubs that integrate the production, processing and distribution of targeted crops and livestock to achieve food security, increase incomes, improve livelihoods, and support economic diversification.
Speaking on Thursday during the SAPZ-2 programme co-financiers meeting held at Presidential Villa, Abuja, the Vice President said the SAPZ programme would be a win-win situation for both the Nigerian government and the development partners in meeting their development objectives and impacting livelihoods.
He said, “This meeting has become imperative to mobilize additional financing for the second phase of the programme to accommodate more States beyond the ten that has been earmarked.
“We currently have a commitment of US$600 million from AfDB through a multi-tranche financing arrangement of US$200 million/year and US$300 million from BADEA expected to be allocated on a US$100 million/year basis.”
On phase one of the initiative, VP Shettima noted that the first phase taught a lot of lessons which is helping the government to reshape the programme towards an accelerated delivery,
Noting that the whole idea will actualize the administration’s food security agenda, he said, “With the African Development Bank (AfDB), the SAPZ programme is different from any other programme and has been set on autopilot with the Design, Build and Operate (DBO) model that is set to deliver infrastructure for the processing zones by the end of 2025.
“The accelerated implementation plan for phase one and the on-boarding of the phase-two states will enable us to achieve Mr. President’s Food Security Agenda.
“The strategic focus is to set modalities for increased production and processing of Cassava, Rice, Maize, Cocoa, Tomatoes, and Livestock amongst other designated SAPZ priority crops in all the seven participating states and the FCT for this upcoming dry season”.
The VP described SAPZ as the agri-business model for Nigeria to diversify its economy through agriculture as well as a platform for development partners to deliver on their developmental objectives across the various SDGs.
He noted that the Nigerian government has made it a Presidential priority programme and has “kick-started the legal arrangement to institutionalize it as an agency of government for sustainability”.
Applauding their commitments to co-finance the initiative together with the Nigerian government, the VP commended the AfDB, the International Fund for Agricultural Development (IFAD) and the Islamic Development Bank (IsDB) for their unwavering commitment to ensuring that SAPZ programme delivers on its objective.
Earlier, National Programme Coordinator, SAPZ, Dr. Kabir Yusuf, said the project is designed to bolster Nigeria’s agro-industrial development, boost food security, create jobs, and reduce poverty, in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda.
“The primary objective is to support sustainable and inclusive agro-industrial development through four components: infrastructure development in agro-industrial hubs, agricultural productivity, policy implementation, and program management.
“For every participating state, we first identify the crop with a competitive and comparative advantage, then support production and agro processing to reduce Nigeria’s 40 percent post-harvest losses. Closing this gap can improve food security by 40 percent,” Yusuf explained.
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The programme spans eight states—Kano, Kaduna, Kwara, Oyo, Ogun, Imo, Cross River, and the Federal Capital Territory (FCT).
“We provide catalytic infrastructure such as power, access roads, and water treatment plants, significantly reducing operating costs for investors. This initiative not only supports agro-industries but also positions Nigeria for sustainable economic diversification,” he added.
Also, Nigeria Country Director for the International Fund for Agricultural Development (IFAD), Ms. Dede Ekoue noted that the SAPZ-1 had remarkable success in the states.
“We are seeing positive outcomes in Kano, where the lives of smallholder farmers and agro-industries have improved. This programme is a federal government priority, aiming to promote inclusive agro-industrialisation, enhance food security, and create jobs. Nigeria’s leadership in this sector can influence the entire continent,” she stated.
For his part, Director General of the African Development Bank Group’s Nigeria Country Office, Dr. Abdul Kamara described the SAPZ as having the highest potential to bring change to Nigeria.
“This comprehensive programme doesn’t just boost production but also creates opportunities for value addition, aligning with President Tinubu’s commitment to food security and youth employment. It positions Nigeria to leverage opportunities like the African Continental Free Trade Area (AFCFTA) by adding value to exports beyond national consumption,” Kamara explained.
Also, a member of Nigeria Country Office for the Islamic Development Bank (IsDB), Mr. Daniyar Abylkhan, commended the SAPZ initiative, saying it aligns with the IsDB’s goals of addressing food insecurity and improving livelihoods.
“Based on the success of the first phase, we are committed to participating in the second phase and ensuring its continued impact,” Abylkhan noted.
Other partners present at the meeting included the Federal Ministry of Finance, World Bank, United Nations Development Programme, Japan International Cooperation Agency, Rural Electrification Agency (REA) among others.
