AIF2024: Nigeria Agro-industrial project gets $2.2 billion investment boost

The Special Agro-Industrial Processing Zones Nigeria project has secured investment interests to the tune of over $2.2 billion at the just concluded Africa Investment Forum in Rabat, Morocco.

The investment pledges were facilitated by the African Development Bank, which is the initiator of the programme.

The pledges were made by attending governors from Nigeria, leaders from multilateral development organizations, the diplomatic corps, and private sector investors, during a packed presidential boardroom on the sidelines of the forum.

In a report published on its website on Tuesday, the AfDB noted that the funds would be utilised for phase 2 of the programme following the completion of phase 1.

“The phase II of the programme will build on phase one by creating agro-industrial hubs that drive productivity, enhance food security, raise living standards, and create jobs,” it added.

The programme is currently operational in eight states of the federation where agro-industrial hubs have been created. The states are Cross River, Imo, Ogun, Oyo, Kaduna, Kano, Kwara, and the FCT.

The AfDB said the operations of SAPZ Nigeria Phase II will be extended to 24 more states.

Dr Akinwunmi Adesina, the AfDB Group President, expressed delight at the investment boost, noting that more jobs and empowerment opportunities would be created in the agricultural sector.

He said, “This is 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.”

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

Professor Banji Oyelaran-Oyeyinka, the Senior Special Adviser on Industrialization to the AfDB President, stressed the need for Nigeria to industrialise agriculture.

He noted that Nigeria’s agricultural output is low because of a lack of industrialisation and technological adoptions. For instance, Nigeria cultivates a lot of cassava yet the country lags in the production of starch and other derivatives from cassava.

He said, “To produce starch from cassava. For every ton of starch, you need four tonnes of cassava. And that ratio cut across most commodities. So for a country like Nigeria which is the biggest producer of cassava, we have only one percent of industrial derivatives in casava because we don’t produce enough.  

“The potential is there. We need all these investors to come and invest on large scales, you need them to bring technologies, new varieties that will give you yields. You need all these companies, you need the factory systems, you need logistics, transportation, cold rooms.” 

He asserted that “without industrialising Agriculture, the country will remain poor!” 

What you should know 

The major objective of the SAPZ programme is to revolutionise Nigeria’s agricultural sector and help the country achieve food security.

• The program aims to: 1. Develop infrastructure for agro-industrial hubs. 2. Enhance institutional capacity and the business environment for agro-industrial growth. 3. Boost agricultural productivity, skills, and private investment across the entire value chain.
• SAPZs are established in areas with high agricultural production potential.
• It is currently operational in eight states namely: Cross River, Imo, Ogun, Oyo, Kaduna, Kwara, and Kano, and the FCT.

Cover photo: By NAIRAMETRICS