The African Development Bank Group (AfDB) has facilitated $2.2 billion in capital mobilization for its transformative Special Agro-Industrial Processing Zones (SAPZ) Nigeria Phase II project during the Africa Investment Forum (AIF) held on December 4 this year.
At the presidential boardroom session held on the project, Nigerian governors, leaders from multilateral development organizations, the diplomatic corps as well as private sector investors expressed support to scaling up financing to national and subnational governments connected to the SAPZ initiative.
The initiative aims to revolutionize Nigeria’s agricultural sector by consolidating on the Phase I programme, designed to create agro-industrial hubs that drive productivity, enhance food security, raise living standards and create jobs.
Commenting on the latest support by the development finance institution during the boardroom session, its Group President, Dr. Akinwumi Adesina, described it as “a defining moment for Nigeria’s agricultural transformation.
“The Nigeria SAPZ II project will create millions of jobs, empower smallholder farmers, and position Nigeria as a leader in agro-industrialization. These investments exemplify the power of collaboration to achieve sustainable development in Africa”, he added.
The SAPZ Nigeria Programme is a country-wide government-enabled and private-sector-led investment program that will, (i) provide infrastructure for the establishment of agro-industrial zones, (ii) strengthen institutional capacity and business environment for agro-industrial development and (iii) support agricultural productivity, skills, and private investment across value chains.
SAPZs are established in areas with high agricultural production potential. They are provided with infrastructure, common services, and supported by policy incentives to integrate agricultural and industrial businesses. Through value-added manufacturing, they have the potential to trigger the long-delayed structural transformation that revitalizes rural areas, enhance food security, improve employment, and boost regional and international trade.
In the Phase I of the SAPZ project, the states that benefitted from the programme comprised Cross River, Imo, Ogun, Oyo, Kaduna, Kwara and Kano, and the Federal Capital Territory and the Phase II is designed to expand to an additional 24 states in the country in the next 3 years and will link Nigeria’s agriculture to agro-industrialization to drive economic growth.
A news report on the boardroom meeting from African Press Organisation (APO) Group circulated on behalf of the AfDB listed the attendees as including the bank’s Vice President for Agriculture, Human and Social Development, Dr. Beth Dunford, chaired the presidential boardroom parley that also featured opening remarks from Bank President and his Senior Special Adviser on Industrialization, Professor Banji Oyelaran-Oyeyinka.
They highlighted the achievements of Phase I and presented the roadmap for Phase II as Oyelaran-Oyeyinka assured the audience that Phase II construction will commence in few months as a flag-off ceremony is scheduled for this month.
The Adviser to President Bola Tinubu on Foreign Direct Investment, Princess Zahrah Mustapha Audu, who represented the Vice President, Kazeem Shettima and the governors of Katsina, Kaduna, Lagos, Kwara, Plateau States participated in the boardroom, as well as commissioners and other representatives from Kogi, Gombe, Kebbi, Imo, Anambra, and Niger States.
According to the news report, they reaffirmed their commitment to creating a conducive environment for the initiative, highlighting progress in land allocation, infrastructure readiness, and policy facilitation at the federal and state levels.
Also, leading investors, such as Arise IIP, Arab Bank for Economic Development in Africa, Africa Export-Import Bank, Sahara Farms, BPI France, Africa50, and the U.S. Development Finance Corporation also attended the boardroom, which at the end of the session, organizers announced a total deal value of $2.2 billion, marking a significant step toward realizing the vision of SAPZ Nigeria phase II.
Speaking on the deal, AfDB Director General for Nigeria, Dr. Abdul Kamara, said: “I am pleased to see this whopping investment interest and commitments by our financing partners for Nigeria, at a time when the country is ramping up efforts to attract investments into the agriculture sector to address food security, create job opportunities and boost economic growth.”
