LThe Federal Government is embarking on an ambitious initiative, targeting $1 billion in agricultural investments and the creation of 500,000 jobs by 2027 through the Special Agro-Industrial Processing Zones Programme.
The PUNCH reported that this was outlined in the SAPZ Fact Sheet revealing a comprehensive strategy to bolster Nigeria’s agricultural landscape.
In collaboration with key development financing institutions, including the African Development Bank, the International Fund for Agricultural Development and the Islamic Development Bank, the government has commenced the first phase of the SAPZ initiative across seven states; Cross River, Imo, Ogun, Oyo, Kaduna, Kano, and Kwara. This phase, referred to as SAPZ-1, aims to attract “$1 billion 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.”
The National Programme Coordinator for SAPZ, Dr. Kabir Yusuf, indicated that the government is prioritizing infrastructure improvements by planning to construct and rehabilitate 190 feeder roads at farm levels.
This move is intended to mitigate post-harvest losses in these targeted areas. The initiative also includes training and empowering 100,000 farmers in climate-smart agricultural practices by 2027.
The total estimated cost of SAPZ-1 is approximately $538.05 million, excluding taxes.
According to the fact sheet, AfDB is set to provide a loan of $160 million, representing 29.7% of the total cost, alongside an additional $50 million from the Africa Growing Together Fund, which accounts for 9.3%. Co-financing from the IsDB and IFAD will contribute $150 million (27.9%) and $100 million (18.6%), respectively, while IFAD plans to mobilize an additional $60 million (11.1%) through the Green Climate Fund’s IGREENFIN initiative.
The Federal and State Governments will also play a role, contributing $18.05 million (3.4%) in cash and in-kind support.
The AfDB will oversee all components of the SAPZ-1 program in Ogun, Oyo, Kaduna, Cross River, and Imo States. In addition, IFAD will manage activities related to Component 2 in Kano and Ogun States, while IsDB will handle activities across all components in Kano, Kwara, and the Federal Capital Territory.
In a recent gathering for the Special Agro-Industrial Processing Zones High-Level Implementation Acceleration Dialogue at the AfDB, state leaders and stakeholders pledged to unify their efforts to combat food insecurity in Nigeria.
They expressed a collective ambition to transform the agricultural landscape despite ongoing challenges related to human and bureaucratic factors.
The Senior Special Advisor to the President of the AfDB on industrialization, Prof. Banji Oyelaran, underscored the human barriers affecting agricultural project execution in Nigeria.
He stated, “The most difficult issues we face are not technical but rather human interventions,” pointing out that bureaucratic delays and personal egos often stall vital initiatives. “Sometimes it takes nearly nine months to resolve issues caused by a single individual’s reluctance to act,” he added.
Oyelaran elaborated on the objectives of the SAPZ initiative, emphasizing its focus on localizing development and enhancing agricultural practices.
Despite securing over $540 million for the first phase, he cautioned that challenges in effectively disbursing these funds could impede progress.
“People will not bring you financing if you have not disposed of the one they gave you in the first place,” he remarked.
He also stressed the importance of knowledge dissemination among farmers, saying, “Knowledge is crucial. If farmers don’t know the right planting times or techniques, they will struggle.” Despite the challenges, Oyelaran remained hopeful, encouraging 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.
Oyelaran envisions a future where agricultural initiatives could significantly boost economic growth.
“Imagine employing 25,000 people at one site alone and multiplying that across the country,” he stated.
The SAPZ national coordinator expressed optimism about the initiative’s potential to diversify Nigeria’s economy through agriculture, explaining that “The SAPZ is a transformative project that aims to promote agriculture as a viable business rather than merely a way of life.”
In Kano State, the Permanent Secretary of the Ministry of Agriculture, Sadi Ibrahim, acknowledged that adherence to legal regulations is a significant bottleneck in project implementation.
“It is essential that we follow these guidelines to ensure successful project implementation in our state,” he remarked, committing to mobilizing resources effectively to meet project targets.
Oyo State’s Executive Adviser on Agribusiness, Adebowale Akande, emphasized the state’s focus on agricultural industrialization.
“We believe that the SAPZ is going to help us achieve our goal of industrializing agriculture,” he noted, underscoring the importance of adding value to local produce.
He elaborated on the project’s incorporation of environmental impact assessments and community engagement to ensure a sustainable approach to agriculture.
Meanwhile, Kaduna State’s Commissioner for Agriculture, Murtala Dabo, highlighted the initiative’s potential to enhance agricultural exports.
“SAPZ aims to create industrial hubs for processing agro-produce, absorbing output from smallholder farmers,” he explained.
Dabo detailed the opportunities for industries to process raw products like ginger and cocoa, which would ultimately benefit both farmers and the national economy, creating a robust agricultural ecosystem that thrives on innovation and sustainability.
