The initiative is part of a broader strategy to address food insecurity and strengthen agricultural practices across the country.
In collaboration with the African Development Bank (AFDB), the federal government launched the first phase of a special Agricultural Industry Processing Zone (SAPZ) project in Kaduna about four years after it was first devised.
The initiative is part of a broader strategy to address food insecurity and strengthen agricultural practices across the country.
In his remarks at a groundbreaking ceremony held in Kaduna on Wednesday, Nigerian Minister of Agriculture and Food Security, Abubakar Chiari described the SAPZ project as a transformative approach to domestic agriculture industry.
“This program is set up to change the way Nigeria approaches agriculture and agricultural industry development under the new hopes of our dear President Bora Tinubu,” he said.
He said the project is a game-changer in the history of Nigerian agriculture and is a dedicated agricultural processing area within a major food production cluster with desirable ultra-modern infrastructure to attract private sector investment in modern agriculture processing of locally produced crops, livestock and other related agricultural activities.
SAPZ Project
SAPZ is one of the AFDB’s ambitious initiatives implemented in at least 18 African countries, including Nigeria. According to the bank, the project area accounts for 19 of Nigeria’s total land, which will benefit 50.4 million people.
The states where the first phase of the programme will be implemented have been selected based on the preparation criteria and the need to ensure a geographical balance across the six geopolitical zones of Nigeria, he said.
Based on this, in partnership with the federal government and other development partners, AFDB launched the SAPZ project in Nigeria in September 2021 during the tenure of former President Muhammadu Buhari, former president of Mr. Tinubu. The central purpose of this program is to improve the country’s large-scale food production, with six states int in the first stage.
By December 2021, the AFDB board had approved a $210 million loan for the project. At the time, Loan said it would jointly win phase 1 of Nigeria’s SAPZ project.
The loan consists of a $160 million AFDB loan and a $50 million Africa Growth Fund loan.
According to program guidelines, large agricultural clusters will be set up nationwide and grassroots farmers will have access to expanded services, including mechanized agriculture and training in the use and maintenance of modern equipment, by establishing centres in 774 local governments.
Implementing the state
Construction of the Phase 1 zone is expected to increase the next value chain product. Cross River State – Cocoa, Rice, Cassava, Federal Capital Territories – Beef and dairy livestock. IMO – Beef and dairy livestock; Kaduna – Tomato, corn, ginger, Kano – Rice, tomato, ground nuts, sesame oil.
The rest is Kwara State – livestock. Ogun State – Cassava, rice, chicken, fishing. Oyo State – Cassava, soybeans, rice.
On Wednesday, Kyari explained that the project is being implemented in a strategic partnership with key support from the state government, related ministries, sectors, agencies, the private sector, AFDB, International Fund Agricultural Development (IFAD) and the Islamic Development Bank (ISDB).
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“The program is designed to start at eight locations in the first phase of Kaduna, Kano, Cross River, Kwara, Oyo, Ogan, Imo State and the Union Capital Region and FCT Abuja,” the minister said.
He explained that the final process of loading the second phase of the program into the additional state is almost complete. This and many explained that they strengthen the Nigerian agribusiness ecosystem and respond effectively and efficiently to potential sector challenges.
He said the SAPZ project marks a new dawn in Nigeria’s agricultural investment activities, which is not just an agricultural initiative, but a catalyst for economic growth and import replacement.
“As we invest in agricultural processing development, we are investing in the future of our community. The success of SAPZ is rooted in the partnerships we have built, the partnerships between the federal government, state governments and international financial institutions,” the minister said.
