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You are here: Home / cat / Oyo State Hosts New Agro-Processing Hub to Drive Nigeria’s Industrial Agriculture

Oyo State Hosts New Agro-Processing Hub to Drive Nigeria’s Industrial Agriculture

Dated: August 4, 2025

Nigeria has officially launched a new Special Agro-Industrial Processing Zone (SAPZ) in Oyo State, representing a significant stride in the country’s agricultural transformation and rural industrialization efforts. The groundbreaking ceremony took place in Ijaiye, near Ibadan, and was attended by prominent national and international dignitaries, including Dr. Akinwumi Adesina, President of the African Development Bank Group, during his final official visit to Nigeria. Other key figures present included Oyo State Governor Seyi Makinde and Nigeria’s Minister of Agriculture, Senator Abubakar Kyari.

The Oyo SAPZ is the third of its kind in Nigeria and the first in the southwest region, following similar initiatives launched in Kaduna and Cross River States earlier in 2025. Dr. Adesina emphasized the importance of these zones in connecting agriculture to value addition through storage, processing, and market access, positioning Nigeria as a potential global agricultural powerhouse.

Funded by a $538 million investment from a coalition including the African Development Bank, the Islamic Development Bank, the International Fund for Agricultural Development, and Nigeria’s federal and state governments, the initiative spans seven states and the Federal Capital Territory in its first phase.

The Oyo SAPZ will cover 3,000 hectares, with 300 hectares set for immediate development. It is projected to accommodate up to 40 agro-processing companies, generate over 100,000 direct and indirect jobs, and benefit more than 500,000 farmers. Governor Makinde described the launch as a major step toward sustainable development, underscoring the role of agriculture as an economic driver beyond food production.

Minister Kyari, speaking on behalf of Vice President Kashim Shettima, reinforced the program’s alignment with national goals under President Bola Ahmed Tinubu’s “Renewed Hope” agenda. He highlighted the importance of partnership and shared vision in national development, with SAPZs seen as central to unlocking Nigeria’s agricultural potential.

Dr. Adesina reiterated that exporting raw agricultural products keeps countries in poverty, whereas processing and adding value leads to wealth creation. He emphasized that SAPZs aim to reduce post-harvest losses, improve logistics and value chains, and generate employment. The success of such zones, he noted, depends on political will, resource mobilization, and strategic collaboration.

Reflecting on his decade-long leadership at the African Development Bank, Dr. Adesina highlighted achievements such as tripling the Bank’s capital and earning accolades for transparency. The SAPZ initiative is a cornerstone of the Bank’s ‘Feed Africa’ strategy, which has expanded across 11 African countries, with Nigeria hosting the largest program.

Local stakeholders expressed strong support for the Oyo SAPZ. David Olatunji, chairperson of the Ijaiye Farm Settlers Association, welcomed the development, noting the region’s readiness for agricultural expansion. Agripreneur Dr. Adebowale Adeyeye praised the zone as a game-changer for scaling agribusiness operations, citing the expected improvements in infrastructure, security, and investment potential.

National Coordinator Dr. Kabir Yusuf announced that the SAPZ program will expand to 10 more states starting in September 2025 as part of the second phase, aiming for nationwide coverage. Dr. Adesina was joined by senior African Development Bank officials, reinforcing the significance of the initiative in Nigeria’s path toward rural economic transformation and agricultural industrialization.

Related Posts

  • Federal Government to Begin Construction of Special Agro-Industrial Zone in Oyo, Nigeria
  • AfDB Participates in Groundbreaking of Special Agro-Industrial Zone in Oyo, Nigeria
  • AfDB Grants $30 Million to Help Benin Farmers Tackle Climate Change and Hunger
  • Nigeria and AfDB Deepen Delivery Dialogue at 2025 Country Portfolio Review
  • Ethiopia: IFAD to Support 5 Million Rural Residents in Strengthening Climate Resilience
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