Nigeria Seeks International Support To Finance Second Phase Of Its Agro Processing Zone Project

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News in brief:
– Nigeria aims to expand the second phase of its agro-industrial projects with $900 million funding from global partners.
– The initiative integrates farming, processing, and distribution, reducing post-harvest losses and boosting exports.

Nigeria is seeking international support to co-finance the second phase of its Special Agro-Industrial Processing Zone (SAPZ-2) programme, an initiative aimed at revolutionising agriculture through industrial hubs. Vice President Kashim Shettima highlighted its potential as a “game changer” for Nigeria’s food security and economic diversification.

The specialized zones will house food production, processing, and distribution facilities. These hubs are expected to reduce post-harvest losses, which currently stand at 50%, by providing critical infrastructure like power, access roads, and water treatment plants.

Expanding impact

Vice President Shettima revealed during a co-financing meeting that SAPZ-2 aims to expand the programme beyond the initial seven states and the Federal Capital Territory (FCT). The first phase involved a $600 million commitment from the African Development Bank (AfDB) and $300 million from the Arab Bank for Economic Development in Africa (BADEA).

The second phase will focus on scaling up efforts to produce and process priority crops, including cassava, rice, maize, cocoa, tomatoes, and livestock, during the dry season.

Why SAPZ matters to Nigerian farmers

The SAPZ model has global relevance:

  • Value addition: Farmers benefit from infrastructure that reduces costs and adds value to crops, aligning with global trade opportunities like the African Continental Free Trade Area (AfCFTA).
  • Job creation: Agro-industrial hubs generate employment in farming, processing, and distribution.
  • Food security: Tackling post-harvest losses by ensuring better food availability locally and internationally.

Lessons from SAPZ-1

Dr. Kabir Yusuf, the SAPZ National Programme Coordinator, emphasised that lessons learned from the first phase have reshaped the programme for faster delivery. Examples include improved infrastructure and effective programme management.

Success stories in states like Kano show how SAPZ improves smallholder farmers’ lives and strengthens agro-industries.

Key partners like the AfDB, International Fund for Agricultural Development (IFAD), and Islamic Development Bank (IsDB) have committed to the initiative, recognising its potential to address food insecurity, enhance livelihoods, and boost Nigeria’s export potential.

Chinwendu Ohabughiro
Chinwendu Ohabughiro
Chinwendu Gift Ohabughiro has a background in English and Literary Studies from Imo State University. She brings a fresh perspective to the world of agriculture writing. When she's not penning compelling content, she's likely lost in the pages of a thrilling mystery or treating herself to the sinful delight of chocolate.

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