AfDB Approves $200M for Nigeria’s SAPZ Phase II to Expand Agro-Industrial Hubs

The decision, made on December 1st, marks a major step toward transforming Nigeria’s agriculture sector into a competitive, value-adding agribusiness ecosystem.

The Board of Directors of the African Development Bank Group (AfDB) has approved $200 million for the first tranche of the Multi-Tranche Financing Facility under Phase II of Nigeria’s Special Agro-Industrial Processing Zones (SAPZ) Program). The decision, made on December 1st, marks a major step toward transforming Nigeria’s agriculture sector into a competitive, value-adding agribusiness ecosystem.

Phase II will be delivered through three tranches to support 27 additional Nigerian states, while the newly approved first tranche will cover 10 states, accelerating the rollout of agro-industrial hubs designed to boost food production, reduce post-harvest losses, generate jobs, and attract large-scale private investment.

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Building Modern Agro-Industrial Hubs Across the Country

The SAPZ initiative tackles structural challenges in Nigeria’s food system by developing inclusive agricultural value chains and providing:

• 10 state-of-the-art Agro-Industrial Hubs with world-class food processing and storage facilities

• Integrated production zones linking farmers to processors and markets

• Infrastructure such as access roads, power supply, irrigation, and digital platforms

• Investment incentives to attract agribusinesses and global food companies

SAPZ facilities will serve as anchors for rural transformation, enabling farmers and MSMEs to access high-quality inputs, modern machinery, and technical assistance while improving their competitiveness in local and export markets.

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Empowering Youth and Women Through Skills and Financing

A cornerstone of SAPZ Phase II is inclusive growth, with dedicated programs for:

• Youth training and vocational development in agro-industry

• Women-focused business development services

• Access to finance for youth and women-owned agribusiness startups

• Enterprise incubation and market-linkage programs

These initiatives will expand economic opportunities for demographic groups that are historically under-represented in Nigeria’s agricultural value chain.

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Significant Job Creation and Private Sector Mobilization

The SAPZ Phase II program is expected to unlock $1.5 billion in new private investments, building on the $600 million already mobilized during the preparation phase. This strong investor response highlights rising confidence in Nigeria’s agriculture sector and the SAPZ model.

Projected job creation includes:

• 1,100,000 total jobs

• 200,000 direct jobs in agro-industries

• 900,000 indirect jobs in logistics, farming, and services

• 660,000 jobs for youth, representing 60% of all employment generated

• At least 50% of all jobs for women, promoting gender equity in the rural economy

These employment opportunities are essential as Nigeria grapples with high youth unemployment, rising food prices, and increasing demand for climate-resilient food systems.

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A Transformational Program for Nigeria’s Agriculture Sector

AfDB Nigeria Country Office Director General Abdul Kamara emphasized the urgency and strategic relevance of SAPZ Phase II: “The Facility ensures continuity and momentum in the SAPZ Program, aligning with Nigeria’s aspirations to address rising food demand, high inflation, and accelerate job creation for youth in agriculture and agro-industry.”

He noted that the intervention is timely, strengthening youth and women participation while catalyzing private sector growth.

Kazuhiro Numasawa, Division Manager for Agricultural Finance and Rural Development, added that investor enthusiasm is already visible: “Several investors are already committed and have begun construction. We look forward to partnerships with private sector players, the Federal Government of Nigeria, and State Governments.”

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A Blueprint for Nigeria’s Agricultural Transformation

SAPZ Phase II is part of a broader AfDB strategy to support Africa’s food self-sufficiency, reduce reliance on food imports, and promote agribusiness as a powerful engine of industrialization.

Once completed, the expanded SAPZ network will:

• Strengthen Nigeria’s food security

• Reduce post-harvest losses

• Enhance export competitiveness

• Attract global agribusiness players

• Modernize rural economies through infrastructure and technology

The program is expected to position Nigeria as a regional leader in agro-industrial transformation, supporting millions of livelihoods while driving sustainable growth.