African Development Bank Seeks $2.2 Billion to Boost Nigeria’s Agriculture Sector

The African Development Bank (AfDB) is spearheading efforts to mobilize $2.2 billion in funding to establish Special Agro-Industrial Processing Zones (SAPZs) across 28 states in Nigeria. The initiative is part of a broader strategy to enhance food security, reduce food imports, and generate employment opportunities in Africa’s most populous country. 

AfDB President, Dr. Akinwumi Adesina, announced the development on Tuesday during the launch of the first phase of the SAPZ program in Kaduna State, northern Nigeria. He emphasized that the move is crucial for Nigeria's economic diversification and rural transformation. 

"We have been able, I would like to say, to mobilize $2.2 billion of investment interest to support the second phase across Nigeria," Adesina said at the inauguration ceremony. 

The first phase of the SAPZ project is already underway in five Nigerian states, supported by over $500 million in funding, which was initially announced in 2022. This phase is aimed at establishing essential infrastructure and facilities to kick-start the value-chain transformation in key agricultural zones. 

The upcoming second phase, for which the $2.2 billion is being secured, will be presented to the AfDB board for approval in the coming weeks. The funding will come from a coalition of development finance institutions and private sector players, including the Arab Bank for Economic Development in Africa, Africa Export-Import Bank, agri-investment fintech Sahara Farms, as well as institutions from France and the United States. 

The SAPZ initiative seeks to create agro-industrial hubs where crops can be processed close to where they are grown, thus reducing post-harvest losses, enhancing supply chains, and improving farmers' incomes. The zones are expected to attract agribusinesses, create rural industrial jobs, and reduce the need for food imports. 

“Nigeria spent $4.7 billion importing food last year alone,” Adesina noted, citing statistics from the AfDB. “This is unsustainable. With investments like these, we are laying the foundation for food sovereignty and economic resilience.” 

The SAPZs are a central pillar in Nigeria's efforts to boost agricultural productivity and value addition in a country where agriculture employs a significant portion of the population but remains underutilized due to infrastructural deficits and market inefficiencies. 

As global food prices remain volatile and climate challenges persist, initiatives like the SAPZs are seen as crucial to strengthening Africa’s food systems and ensuring long-term sustainability in the agricultural sector.

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