Nigeria’s SAPZ project attracts $2.2bn investment commitments for second phase

The African Development Bank (AfDB) says it has facilitated $2.2 billion capital mobilisation for Nigeria’s special agro-industrial processing zones (SAPZ) phase two project.

According to a statement on Tuesday, the bank said the funds were raised during a presidential meeting held on the sidelines of the just concluded Africa Investment Forum (AIF) in Rabat, Morocco.

The AfDB said Nigerian governors, leaders from multilateral development organisations, the diplomatic corps, and private sector investors who attended the boardroom expressed support for scaling up financing to the federal and state governments connected to the SAPZ Nigeria initiative.

“This ambitious initiative is set to revolutionize Nigeria’s agricultural sector. Building on phase I, it is intended to create agro-industrial hubs that drive productivity, enhance food security, raise living standards and create jobs,” the statement reads.

Speaking on the funds, Akinwumi Adesina, president of AfDB, described the investment as a defining moment for Nigeria’s agricultural transformation.

“The Nigeria SAPZ II project will create millions of jobs, empower smallholder farmers, and position Nigeria as a leader in agro-industrialization,” he said.

“These investments exemplify the power of collaboration to achieve sustainable development in Africa.”

The federal government secured $1 billion for the Phase I project, which was intended to benefit Cross River, Imo, Ogun, Oyo, Kaduna, Kwara, Kano, and the federal capital territory.

“Nigeria Phase II is underway to expand to an additional 24 States in Nigeria in the next 3 years and will link Nigeria’s agriculture to agro-industrialization to drive economic growth,” the AfDB added.

According to the statement, leading investors, such as Arise IIP, Arab Bank for Economic Development in Africa, Africa Export-Import Bank, Sahara Farms, BPI France, Africa50, and the U.S. Development Finance Corporation also attended the boardroom.

Abdul Kamara, AfDB’s director-general for Nigeria, said he was pleased “to see this whopping investment interest and commitments by our financing partners for Nigeria, at a time when the country is ramping up efforts to attract investments into the agriculture sector to address food security, create job opportunities and boost economic growth”.

The SAPZ programme is a private-sector-led investment initiative that will provide infrastructure for the establishment of agro-industrial zones, strengthen institutional capacity and business environment for agro-industrial development, and support agricultural productivity, skills, and private investment across value chains.