The African Development Bank (AfDB) has unveiled an ambitious $1 billion financing plan for the second phase of its Special Agro-Industrial Processing Zones (SAPZ) programme, designed to revitalize agriculture across Nigeria .
Dr. Akinwumi Adesina, President of the AfDB, announced the development during the inauguration of a soybean factory and refinery by Called Servant to Service (CSS) Global Integrated Farms in Gora, Local Government Area from Karu, Nasarawa State. The refinery, with a production capacity of 10,000 liters of soybean oil per day, is expected to significantly reduce Nigeria’s dependence on crude soybean oil imports, valued at $62.2 million in 2023 .
Dr. Adesina hailed the refinery as a landmark achievement in Nigeria’s agricultural sector and highlighted its role in boosting national production. He highlighted that the farm’s operations could be further improved under the SAPZ initiative. This initiative, supported by funding of $538 million for its first phase, is already operational in seven states, including Cross River, Imo, Oyo, Ogun, Kaduna, Kano and Kwara, as well as the Federal Capital Territory ( FCT). The second phase aims to cover the remaining 28 states, with support from the AfDB, the Arab Bank for Economic Development for Africa and private sector partners.
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At the Africa Investment Forum held in Rabat, Morocco in December 2024, the AfDB and its partners successfully mobilized $2.2 billion in investment interest for the SAPZ program. Nasarawa State is expected to play a significant role in the second phase, with CSS Farms serving as a key investor in the proposed agro-industrial processing zone.
“The second phase of the program would cover the remaining 28 states, with a funding target of $1 billion from the AfDB, the Arab Bank for Economic Development of Africa and the private sector,” Adesina said.
Dr. Adesina commended CSS Farms for its efforts to improve food production, promote agribusiness among Nigerian youths and achieve the prestigious ISO 9001 certification from the International Organization for Standardization.
Although these developments highlight the potential for a transformative impact on Nigeria’s agricultural sector, insecurity remains a critical challenge. Across the country, particularly in the northern regions, farmers face significant threats from banditry, terrorism and communal clashes. The dangers have made vast agricultural lands inaccessible, compromising food production and creating a ripple effect of economic hardship.
This week, Boko Haram insurgents killed at least 40 farmers and fishermen on community farms in Dumba, near Baga, in Nigeria’s northeastern Borno state. Such incidents are not isolated; they highlight the persistent insecurity that continues to threaten rural livelihoods and agricultural productivity.
Experts have warned that if insecurity is not addressed, initiatives such as the SAPZ program may struggle to achieve the desired impact.
The Nigerian government’s failure to end insecurity has left the agricultural sector vulnerable. This ongoing crisis has forced many farmers to abandon their fields, leading to reduced food production, soaring prices and increased dependence on imports. The situation has also deterred potential investors in the agro-industrial sector, further complicating efforts to achieve self-sufficiency in food production.
Despite these challenges, the SAPZ program offers hope for Nigeria’s agricultural future. The program aims to attract private investment, generate jobs and stimulate economic growth by creating agro-industrial activity centers. The soya refinery inaugurated in Nasarawa represents a crucial step in this direction, contributing to import substitution and the development of a value-added agricultural sector.
Dr. Adesina emphasized that the SAPZ initiative is not only about infrastructure and investment, but also about transforming Nigeria into a hub of agro-industrial excellence. However, experts and stakeholders noted that the challenges posed by insecurity must be addressed for the program to reach its full potential.
