Nigeria’s agricultural transformation drive has gained major momentum, with the African Development Bank Group approving $200 million for the first tranche of funding under Phase II of the Special Agro-Industrial Processing Zones (SAPZ) Program. The decision, endorsed on December 1st, marks the beginning of a multi-tranche facility that will ultimately support 27 additional states across the country, with the first tranche focused on advancing work in 10 states.
The programme aims to build an inclusive and competitive agricultural value chain by establishing 10 Agro-Industrial Hubs equipped with modern food processing infrastructure and designed to attract large-scale private sector investment. The initiative places strong emphasis on empowering youth and women through vocational training, business development services, and improved access to finance.
Alongside infrastructure development, the project will create an agricultural services ecosystem that gives farmers, youth-led enterprises, and MSMEs access to markets, high-quality inputs, and technical support to scale production and improve profitability.
Abdul Kamara, Director General of the African Development Bank’s Nigeria Country Office, highlighted the urgency and impact of the initiative, noting that the commitment supports Nigeria’s efforts to meet rising food demand, curb inflation, and generate meaningful employment. He emphasized that the programme will strengthen participation among women and youth while accelerating private investment.
Globally, Phase II of the SAPZ program is set to mobilize $1.5 billion in new private sector investment, following more than $600 million secured during project preparation. The effort is expected to generate approximately 1.1 million jobs across participating states—200,000 direct and 900,000 indirect—with youth projected to benefit from about 60% of these positions, and at least half being reserved for women.
Kazuhiro Numasawa, Division Manager for Agricultural Finance and Rural Development at the Bank, confirmed strong investor interest in Phase II, noting that several partners have already commenced construction activities.
With this latest investment, Nigeria is positioned to accelerate food system transformation, expand agro-industrial capacity, and unlock new economic pathways for farmers, entrepreneurs, and local communities.
