The Federal Government FG is targeting $1bn agricultural investment and 500,000 jobs by 2027 from the Special Agro-Industrial Processing Zones Programme, according to the SAPZ Fact Sheet obtained by Sunday PUNCH.
The government, in partnership with several development financing institutions, including the African Development Bank, the International Fund for Agricultural Development, and the Islamic Development Bank, has started implementation of the first phase of the SAPZ in seven states.
SAPZ-1, which is being implemented in Cross River, Imo, Ogun, Oyo, Kaduna, Kano, and Kwara states, targets “$1bn in new investment from private sector companies within the agro-processing hubs and agricultural transformation centres, as well as 500,000 jobs disaggregated by direct and indirect age group and gender”.
According to the document issued by the National Programme Coordinator for SAPZ, Dr Kabir Yusuf, the Federal Government plans to construct and rehabilitate 190 feeder roads at farm levels, thereby reducing post-harvest losses within the catchment areas. The document states that 100,000 farmers will be trained and empowered in climate-smart agriculture by 2027.
The fact sheet estimates the total cost of SAPZ-1 at $538.05m, net of taxes.
It indicated, “AfDB will provide an ADB loan of $160m (29.7 per cent of total cost), together with an Africa Growing Together Fund loan of $50m (9.3 per cent). The IsDB and IFAD will provide parallel co-financing of $150m (27.9 per cent) and $100m (18.6 per cent), respectively.
“Additional resources ($60m, 11.1 per cent) will be mobilised through the Green Climate Fund by IFAD from the IGREENFIN initiative. The Federal and State Governments will contribute $18.05 million (3.4 per cent) in both cash and kind.
“The AfDB will finance all SAPZ-1 programme components in Ogun, Oyo, Kaduna, Cross River, and Imo States. Under parallel co-financing arrangements, IFAD will finance activities under Component 2 of the programme in Kano and Ogun States and related management costs, while IsDB will finance activities across all programme components in Kano and Kwara States, as well as the Federal Capital Territory.”
Meanwhile, states had pledged to unite in combating food insecurity in the country. State leaders and stakeholders recently gathered for the Special Agro-Industrial Processing Zones High-Level Implementation Acceleration Dialogue at the African Development Bank to emphasise their collective ambition to transform Nigeria’s agricultural landscape, despite ongoing human and bureaucratic challenges.
The Senior Special Advisor to the President of the African Development Bank on industrialisation, Prof. Banji Oyelaran, highlighted human barriers affecting agricultural project execution in Nigeria.
“The most difficult issues we face are not technical but rather human interventions,” he remarked, noting that bureaucratic delays and personal egos often stalled vital initiatives.
He stated, “Sometimes it takes nearly nine months to resolve issues caused by a single individual’s reluctance to act.”
Oyelaran elaborated on the SAPZ initiative, designed to localise development and enhance agricultural practices.
Despite securing over $540m for the first phase, he warned that challenges in effectively disbursing those funds could hinder progress.
“People will not bring you financing if you have not disposed of the one they gave you in the first place,” he noted.
He emphasised the urgent need for knowledge dissemination among farmers, asserting, “Knowledge is crucial. If farmers don’t know the right planting times or techniques, they will struggle.”
Despite those challenges, Oyelaran remained optimistic, urging stakeholders to adhere to project guidelines and setting a compliance deadline of December 20.
“If anyone is not willing to obey the rules, they should just say it, and we will cancel their participation,” he warned.
He envisioned a future where agricultural initiatives could lead to substantial economic growth, stating, “Imagine employing 25,000 people at one site alone and multiplying that across the country.”
The SAPZ national coordinator expressed optimism about the initiative’s potential to diversify Nigeria’s economy through agriculture, adding, “The SAPZ is a transformative project that aims to promote agriculture as a viable business rather than merely a way of life.”
The Permanent Secretary of the Ministry of Agriculture in Kano State, Sadi Ibrahim, stated that adherence to legal regulations remained a significant bottleneck.
“It is essential that we follow these guidelines to ensure successful project implementation in our state,” he stated, expressing commitment to mobilising resources effectively to meet project targets.
Oyo State Executive Adviser on Agribusiness, Adebowale Akande, highlighted the state’s focus on agricultural industrialisation.
“We believe that the SAPZ is going to help us achieve our goal of industrializing agriculture,” he said, emphasising the importance of adding value to local produce.
He described how the project incorporates environmental impact assessments and community engagement to ensure a sustainable approach to agriculture.
Kaduna State’s Commissioner for Agriculture, Murtala Dabo, stressed the initiative’s role in adding value to agricultural exports.
“SAPZ aims to create industrial hubs for processing agro-produce, absorbing output from smallholder farmers,” he explained.
He outlined the potential for industries to process raw products like ginger and cocoa, ultimately benefiting both farmers and the national economy.
