FG Commits $538.05m to Agro-Industrial Zones to Boost Food Security

FG Commits $538.05m to Agro-Industrial Zones to Boost Food Security



The Federal Government of Nigeria has announced a $538.05 million investment in Phase 1 of the Special Agro-Industrial Processing Zones (SAPZ) program, aimed at transforming the nation’s agricultural sector and enhancing food security. 

The initiative, launched in 2022 and now advancing into implementation in 2025, is a collaborative effort with the African Development Bank (AfDB), the International Fund for Agricultural Development (IFAD), and the Islamic Development Bank (IsDB).

The SAPZ program targets eight states—Kaduna, Kano, Kwara, Cross River, Imo, Ogun, Oyo, and the Federal Capital Territory, focusing on establishing agro-processing hubs and agricultural transformation centers. 

These zones are designed to cluster production, processing, and distribution to reduce costs, boost productivity, and promote private-sector-led growth. 

The initiative addresses Nigeria’s $4.7 billion annual food import bill by enhancing local processing and reducing reliance on imports.

Groundbreaking ceremonies in Kaduna and Cross River in April 2025 marked the start of construction. 

According to AfDB President Dr. Akinwumi Adesina, the program will create jobs and drive economic growth. 

Vice President Kashim Shettima emphasized its role in achieving President Bola Ahmed Tinubu’s vision for a food-secure Nigeria.

The $538.05 million funding, net of taxes, is co-financed by the AfDB, IFAD, IsDB, and the Federal Government. 

The program, running through 2026, is expected to strengthen Nigeria’s agricultural value chains, improve rural infrastructure, and enhance market access for farmers. 

 

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Source: Nigerianeye

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