Nigeria’s Food and Agriculture Sector Enters a New Era of Industrialisation

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Nigeria’s food and agriculture sector is poised for a transformative shift as the government, the African Development Bank (AfDB), and the Kaduna State government launch the first phase of the Special Agro-industrial Processing Zones (SAPZ) program.

The groundbreaking ceremony is set for Tuesday, April 8, in Kaduna, featuring African Development Bank Group President Dr. Akinwumi Adesina, Nigeria’s Vice President Kashim Shettima, and Kaduna State Governor Uba Sani. Following this event, Dr. Adesina will proceed to Cross River State for another groundbreaking ceremony with the Federal Government and State Governor Bassey Edet Otu.

The USD 538 million initial phase of the SAPZ program encompasses eight states: Kaduna, Kano, Kwara, Cross River, Imo, Ogun, Oyo, and the Federal Capital Territory. Launched in 2022 with USD 210 million from the African Development Bank, this initiative also receives support from the Islamic Development Bank, the International Fund for Agricultural Development, and ARISE Integrated Industrial Platforms.

The SAPZ program aims to enhance Nigeria’s food production, reduce imports, create youth employment, protect foreign exchange reserves, and transform rural areas into thriving economic zones. In 2022, Nigeria spent USD 4.7 billion on food imports, a trend the program seeks to reverse by maximizing local production capabilities and strengthening agro-industrial value chains nationwide.

The initiative is projected to boost agricultural productivity by over 60%, minimize post-harvest losses, and fortify supply chains from farm to market. Key agro-industrial hubs, transformation centers, and aggregation centers will be established in Kaduna and Cross River, forming the backbone of the SAPZ program.

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This program could generate over 60,000 jobs in each participating state, with locations chosen for their agricultural potential, infrastructure readiness, and strategic geography. In Kaduna, the focus will be on crops like maize, soybeans, ginger, and tomatoes, while Cross River will concentrate on cocoa, cassava, and rice. The sites are also situated near major universities—Ahmadu Bello University in Kaduna and the University of Calabar in Cross River—facilitating access to research, innovation, and skilled labor to further bolster agro-industrial growth.

Several state governors, federal officials, and development partners are expected to attend both groundbreaking ceremonies. With 37% of the African Development Bank Group’s USD 5.1 billion portfolio in Nigeria dedicated to private sector initiatives, there are significant opportunities for collaboration in the nation’s development efforts.