$200 Million African Development Bank Funding to Revolutionize Nigerian Agriculture and Create 1.1 Million Jobs

The African Development Bank (AfDB) has approved $200 million for the first tranche of Phase II under Nigeria’s Special Agro-Industrial Processing Zones (SAPZ) Program. This funding will support the expansion of agro-industrial hubs across 10 Nigerian states, with subsequent tranches targeting an additional 27 states.

The initiative aims to strengthen Nigeria’s agricultural value chain by providing food processing infrastructure, mobilizing private sector investments, and creating opportunities for youth and women. Participants will benefit from training programs, vocational support, business development services, and improved access to finance.

The SAPZ Program will also establish an agricultural infrastructure platform, enabling farmers, youth enterprises, and MSMEs to access quality inputs, technical services, and new markets.

Abdul Kamara, AfDB Director General for Nigeria, emphasized that the project aligns with Nigeria’s goals to meet rising food demand, combat inflation, and create jobs in agriculture and agro-industry. He highlighted that the program prioritizes youth and women participation while encouraging private sector investment.

Phase II is expected to attract $1.5 billion in new private sector funding, building on over $600 million mobilized during the program’s initial phase. The investment is projected to generate approximately 1.1 million jobs, including 200,000 direct and 900,000 indirect positions. Around 60% of these roles are expected to benefit youth, with at least 50% allocated to women.

Kazuhiro Numasawa, AfDB Division Manager for Agricultural Finance and Rural Development, noted that private investors have already begun construction in several states and are leveraging the Bank’s support to scale operations. He stressed the importance of collaboration between the federal and state governments, private sector players, and the AfDB to ensure the program’s success.

The SAPZ initiative is a major step toward boosting agricultural productivity, driving economic growth, and promoting inclusive development in Nigeria.