Nigeria Secures $2.2 Billion For Agro-Industrial Hubs At AIF2024

News in brief:- Nigeria secures $2.2 billion to expand agro-industrial hubs across 24 additional states under the SAPZ project. - Farmers will benefit from job creation, better pricing, and access to processing facilities to scale up agricultural output. Nigeria’s Special Agro-Industrial Processing Zones (SAPZ) project has attracted over $2.2 billion in investment commitments at the Africa Investment Forum (AIF) 2024 in Rabat, Morocco. This groundbreaking funding aims to boost agricultural industrialisation across Nigeria. The African Development Bank (AfDB), which spearheads the SAPZ program, facilitated pledges from Nigerian governors, international organisations, and private investors. Following the successful first phase, these funds will support the second phase of the SAPZ project.

Expanding the reach of SAPZ

The SAPZ initiative focuses on developing large agro-industrial hubs to transform raw agricultural produce into processed goods, enhancing productivity, creating jobs, and improving food security. These hubs connect farmers to markets and industries, ensuring value addition at every stage of the agricultural supply chain. The project operates in eight states—Cross River, Imo, Ogun, Oyo, Kaduna, Kwara, Kano, and the Federal Capital Territory (FCT). The next phase will extend to 24 additional states, covering more regions and creating more opportunities for Nigerian farmers. Dr. Akinwunmi Adesina, AfDB President, described the investment as transformative for Nigeria’s agriculture. "This is a game-changer for food security and job creation," he stated, highlighting that SAPZ will empower smallholder farmers and reduce post-harvest losses.

Overcoming challenges

Professor Banji Oyelaran-Oyeyinka, AfDB’s Senior Special Adviser on Industrialisation, explained that a lack of processing facilities hinders Nigeria’s agricultural output. For instance, despite being the largest producer of cassava, Nigeria processes only 1% into industrial derivatives like starch. "To make one ton of starch, you need four tons of cassava," he noted, emphasising that without industrialising agriculture, the sector will struggle to meet its potential. This investment signals hope for Nigerian farmers, who will benefit from increased access to processing facilities, better pricing for their produce, and new employment opportunities. Additionally, improved technologies and infrastructure will enable farmers to scale up their production and income levels.