The Federal Government of Nigeria and the Oyo State Government, in collaboration with the African Development Bank, are set to hold the groundbreaking ceremony for the Oyo State Special Agro-Industrial Processing Zone (SAPZ) on 2 August 2025. The event, which will take place in Ijaiye, Akinyele Local Government Area, will feature prominent figures including Nigeria’s Vice President, Kashim Shettima; AfDB President, Dr. Akinwumi A. Adesina; and Oyo State Governor, Seyi Makinde, along with development partners, private sector leaders, and senior government officials.
The SAPZ initiative is a core component of the African Development Bank’s Feed Africa strategy. It is designed to catalyze rural transformation in Nigeria by promoting agro-industrialization, enhancing market access, and drawing significant private sector investment. The upcoming launch in Oyo marks the third groundbreaking in Phase I of the SAPZ programme and the first in Nigeria’s southwest, following earlier ceremonies in Kaduna and Cross River States in April 2025.
Phase I of Nigeria’s SAPZ programme spans seven states—Kaduna, Cross River, Oyo, Ogun, Kwara, Kano, and Imo—alongside the Federal Capital Territory. The total funding package for this phase amounts to $538 million, jointly financed by the African Development Bank, the Islamic Development Bank, and the International Fund for Agricultural Development, with additional contributions from federal and state governments.
Oyo State stands out for its agricultural potential, with over 90% of its 28,454 square kilometers of land suitable for farming. The state has a population nearing 8 million and benefits from close proximity to Lagos, Africa’s largest subnational economy. This geographic advantage enhances Oyo’s strategic position as a key location for agro-industrial activity, investment, and market connectivity.
The 300-hectare SAPZ site in Ijaiye is just 29 kilometers from the state capital, Ibadan. It is well-connected to transport infrastructure, including a major railway station 16 kilometers away and an upgraded road network leading to the Samuel Ladoke Akintola Airport, which is undergoing transformation into an international cargo facility. These logistics assets support the development of domestic and export-oriented agro-processing operations.
Oyo’s SAPZ will focus on processing key agricultural products where the state has a comparative advantage, such as cassava, maize, poultry, soybeans, and horticultural crops. In addition to the Ijaiye hub, the state is also developing a larger 2,800-hectare agribusiness hub in Eruwa. This site will feature an Agricultural Transformation Centre aimed at supporting smallholder farmers and youth agripreneurs through shared infrastructure and services. Both projects are backed by a $37 million investment from the African Development Bank.
The launch of the Oyo SAPZ reflects the ongoing scale-up of Nigeria’s agro-industrial transformation agenda. As Phase I progresses, plans for Phase II are already underway, with 24 more states expected to join. This next phase attracted $2.2 billion in global investment interest during the Africa Investment Forum held in December 2024, signaling strong momentum for the nationwide rollout of inclusive and integrated agro-industrial development.
