Nigeria Begins $510 Million Agro-Industrial Zones Project to Transform Rural Economy

Several prominent figures, including former Vice President Namadi Sambo and Deputy Governor Dr. Hadiza Sabuwa Balarabe, also attended the ceremony, showing broad political support for the SAPZ initiative.

Nigeria officially launched its ambitious project to revolutionize its agriculture and food sectors with the groundbreaking of the $510 million Special Agro-Industrial Processing Zones (SAPZ) on Tuesday. The project, backed by the African Development Bank (AfDB) and a coalition of international development partners, marks the beginning of a transformative journey aimed at creating sustainable, job-generating agro-industrial zones across the country.

The event took place in Kaduna State, northern Nigeria, with thousands of enthusiastic local residents attending the ceremony despite the sweltering heat and a rare downpour, which was the first rainfall in over six months. Among the dignitaries present were Nigeria's Vice President, Kashim Shettima, Dr. Akinwumi Adesina, President of the African Development Bank Group, and Governor Uba Sani of Kaduna State, who all played key roles in the groundbreaking ceremony of the first SAPZ project.

The launch in Kaduna is the first of eight SAPZ projects planned under the Phase One of the initiative. The other seven states include Cross River, where the groundbreaking occurred on Thursday, April 10, 2025, and Kano, Kwara, Imo, Ogun, Oyo, and the Federal Capital Territory (FCT). Preparations are already underway for Phase Two, which will cover the remaining 28 states across Nigeria.

The SAPZ initiative is a key part of Nigeria’s broader strategy to enhance national food security, eliminate dependency on food imports, and generate sustainable agricultural development. The program is designed to create industrial zones dedicated to processing and adding value to agricultural products, particularly in rural areas. The expected outcome is the transformation of these areas into vibrant economic hubs that will provide jobs and empower farmers and local entrepreneurs.

Vice President Shettima emphasized the significance of the project during the ceremony. He described the SAPZ initiative as a vital step towards ensuring that Nigeria becomes a leader in agricultural innovation, with a focus on local food production, job creation, and the empowerment of Nigerian youth. “We are not merely breaking ground; we are laying the foundation for a future where agriculture fuels our economic growth, where our farmers thrive, and where the resilience of our people and their ingenuity drives our nation forward,” he declared.

Dr. Akinwumi Adesina, who had long championed the development of the Staple Crop Processing Zones (SCPZ), reflected on the significance of the moment, noting that the SAPZ project was the realization of a 15-year dream. As Nigeria's former Minister of Agriculture, Adesina had envisioned a system where rural areas were revitalized through agro-industrial zones that would support both local farmers and national economic growth. He recalled the challenges of the past and celebrated the success of turning the dream into reality: “This day is a culmination of years of dedication, and today, we witness the birth of something truly transformative for Nigeria,” said Adesina.

The SAPZs will receive funding from multiple sources, including $200 million from the African Development Bank, $150 million from the Islamic Development Bank, $100 million from the International Fund for Agricultural Development (IFAD), and $60 million from the Green Climate Fund. With these funds, the initiative aims to establish cutting-edge infrastructure to support agricultural processing, creating thousands of direct and indirect jobs, particularly in rural communities.

The project also boasts strong political backing at both the federal and state levels, which is vital for its success. Governor Uba Sani of Kaduna State emphasized his administration's commitment to agricultural development, stating that the state government had made unprecedented investments in the sector, with agriculture now receiving more than 10% of the state’s budget. Kaduna, already a leading producer of crops like maize, ginger, and tomatoes, is expected to significantly benefit from the SAPZ project as it strengthens its position as a key player in Nigeria’s agriculture.

The broader impact of the SAPZ initiative is set to be far-reaching, as it aims to modernize rural economies, provide farmers with access to high-quality inputs such as seeds and fertilizers, and improve the value chain by boosting agro-processing. It is also expected to attract private sector investments, fostering the growth of agribusinesses and increasing Nigeria's potential for both domestic and export markets.

Nigeria’s Minister of Agriculture and Food Security, Senator Abubakar Kyari, called the project a “pivotal leap” in the country’s efforts to harness private capital to develop rural economies and ensure food security. “This project promises to strengthen the backbone of our rural communities by creating job opportunities and enhancing the livelihoods of our farmers,” he added.

Several prominent figures, including former Vice President Namadi Sambo and Deputy Governor Dr. Hadiza Sabuwa Balarabe, also attended the ceremony, showing broad political support for the SAPZ initiative. The Emir of Zazzau, Ambassador Ahmed Nuhu Bamalli, expressed his gratitude for the project, which he believes will bring lasting benefits to the local population. “This Bank-led project honours our people and gives us hope for a brighter future,” he said.

The SAPZ initiative is not limited to Nigeria; it is being implemented across 11 African countries, including Côte d'Ivoire, Senegal, Guinea, Liberia, Madagascar, Togo, Ethiopia, Democratic Republic of Congo, Mozambique, and Mali. These countries are also seeing similar projects aimed at modernizing their agriculture sectors and boosting local economies through agro-processing.

For local farmers like Hannafu Emmanuel, the SAPZ promises tangible benefits. “We are happy today because the SAPZ has promised to provide quality seedlings, inputs, and guaranteed markets for our produce,” said Emmanuel, reflecting the optimism shared by many in the farming community.

With significant backing from international development organizations and strong national support, the Special Agro-Industrial Processing Zones initiative is poised to be a game-changer for Nigeria’s agriculture sector, creating a sustainable foundation for future growth and prosperity.