Abuja, Nigeria – In a move aimed at bolstering food security, creating jobs, and diversifying the economy, Nigeria has secured a significant financial boost for its Special Agro-Industrial Processing Zones (SAPZ) program. The African Development Bank Group (AfDB) and a consortium of partners have pledged $538 million to accelerate the development of eight new zones across the country.
This agreement, reached after a two-day meeting in Abuja, marks a turning point for the SAPZ program, launched in 2022. The initiative envisions the creation of integrated hubs that combine production, processing, and distribution of key agricultural products. These zones are expected to be game-changers, not only for food security but also for rural livelihoods and the national economy.
With Nigeria still grappling with the after-effects of inflation and a volatile exchange rate, success of the SAPZ program is seen as crucial. “The macroeconomic stabilization efforts under President Bola Tinubu are showing positive signs,” said Finance Minister Wale Edun. “The SAPZ program cannot afford to disappoint; it must deliver.”
Focus on Collaboration and Efficiency
The Abuja meetings emphasized the importance of collaboration between federal and state governments, as well as development partners and the private sector. Open dialogue and knowledge-sharing were central to the discussions, as participants charted a course for swift implementation of the program’s first phase.
“Alignment at all levels is key,” stressed Agriculture Minister Abubakar Kyari. “Our collective efforts, from federal to state and in partnership with development partners, must translate into tangible outcomes for those who need it most – particularly rural communities where the SAPZs will have the biggest impact.”
Unlocking Private Sector Investment
The African Development Bank (AfDB) is playing a pivotal role in driving the SAPZ program forward. Dr. Abdul Kamara, Director General of the AfDB’s Nigeria Country Department, highlighted the importance of private sector involvement. “Rapid implementation of the SAPZs is critical to address the decline in Nigeria’s manufacturing sector and its contribution to GDP,” he explained. Prof. Banji Oyelaran-Oyeyinka, Senior Special Adviser to the AfDB President, echoed this sentiment, emphasizing the urgency of overcoming delays.
The second day of the meetings delved deeper into the operational aspects of the program. A workshop brought together government officials, development partners, and private sector investors to discuss financing, procurement, and a concrete implementation plan. Transparency and fair competition were central themes, with a commitment from federal and state governments to utilize independent vendor selection processes.
Empowering Rural Communities and Businesses
The Sunday Times understands that the SAPZ program has the potential to be transformative. The first phase alone is expected to unlock a staggering $1 billion in private sector investments. This surge in investment is projected to benefit an estimated 1.5 million households, including smallholder farmers, agribusinesses, and entrepreneurs. Job creation is another significant anticipated outcome, with the program poised to generate at least 400,000 direct jobs and over 1.6 million indirect jobs, with a particular focus on empowering women and youth.
The Nigeria SAPZ program is a beacon of hope for a more food-secure, prosperous, and diversified Nigerian economy. By fostering collaboration, unlocking private sector investment, and empowering rural communities, this initiative has the potential to be a true game-changer for the nation.
