African Development Bank Group and Nigeria Kick Off $538 million agro-industrial project across eight states.

Nigeria’s food and agriculture sector is set to enter a new era of industrialization, as the Nigerian government, the African Development Bank, and the State government of Kaduna kickstart the construction of Phase 1 of the Special Agro-industrial Processing Zones (SAPZ) program.

The groundbreaking ceremony starts in Kaduna on Tuesday, 8 April, where the chief guest, African Development Bank Group President Dr Akinwumi Adesina, will join Nigeria’s Vice President, Kashim Shettima, and the State Governor of Kaduna, Uba Sani. From Kaduna, Dr Adesina will head to Cross River State, where, together with the Federal Government and the State Governor, Bassey Edet Otu, a second groundbreaking ceremony will take place.

The $538 million first phase of the Special Agro-industrial Processing Zones program project includes eight states: Kaduna, Kano, Kwara, Cross River, Imo, Ogun, Oyo, and the Federal Capital Territory. The program launched in 2022 with $210 million from the African Development Bank and support from the Islamic Development Bank, the International Fund for Agricultural Development, and ARISE Integrated Industrial Platforms.

The Special Agro-Industrial Processing Zones program will boost Nigeria’s food production and reduction importation, generate jobs for youth, safeguard the country’s foreign exchange, and transform rural areas from areas of misery into zones of prosperity.

Last year, Nigeria spent $4.7 billion importing food. The Special Agro-Industrial Processing Zones program is designed to reverse this trend by unlocking local production potential and strengthening agro-industrial value chains nationwide.

This initiative will increase agricultural productivity by over 60%, reduce post-harvest losses and strengthen value chains from farm to market. The cities of Kaduna and Cross River will host the Agro-Industrial Hubs, Agricultural Transformation Centers, and Aggregation Centers in the production zones, which are the foundational building blocks of the SAPZ program.

The program has the potential to create more than 60,000 jobs in each of the pioneering states. The sites were strategically selected for their agricultural potential, infrastructure readiness, and prime geographical location, ensuring they drive Nigeria’s agro-industrial growth. For Kaduna, the focus will be on maize, soybeans, ginger, and tomatoes. Cross River will leverage its cocoa, cassava, and rice. Additionally, for both states, the SAPZ sites are located near major universities, such as Ahmadu Bello University in Kaduna and the University of Calabar in Cross River. Proximity to universities will provide access to research, innovation, and skilled human capital, further strengthening the agro-industrial transformation.

Several other state governors, federal government officials, and development partners will attend the two groundbreaking ceremonies. With 37% of the African Development Bank Group’s $5.1 billion Nigeria portfolio dedicated to private sector initiatives, Nigeria presents substantial opportunities for partnership in its ongoing development.