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The African Development Bank (AfDB) has successfully completed the first phase of its Special Agro-Industrial Processing Zones (SAPZ) initiative. A total of eight agro-industrial hubs have been commissioned across seven states and the Federal Capital Territory, with 28 more hubs planned under Phase II of the programme.
The announcement was made by Prof. Banji Oyelaran-Oyeyinka, Senior Special Adviser to the AfDB President, during the groundbreaking ceremony for the new SAPZ site in Ijaiye, Akinyele Local Government Area, Oyo State. The event marked a significant milestone in the journey that began over a decade ago under the leadership of Dr. Akinwumi Adesina, who now serves as President of the AfDB.
According to Oyelaran-Oyeyinka, “In Nigeria, we have completed eight sites under SAPZ Phase One, with 28 more in the pipeline. This affirms AfDB’s commitment to transforming Africa’s rural economies through agro-industrialisation.” The first phase of the initiative spans key states including Kaduna, Cross River, Oyo, Ogun, Kwara, Kano, and Imo, in addition to the Federal Capital Territory.
The SAPZ programme is designed to revolutionise Nigeria’s agribusiness sector by developing value-chain ecosystems that promote job creation, reduce poverty, and attract investments. Backed by a $538 million funding package, the programme is jointly financed by the AfDB, Islamic Development Bank, International Fund for Agricultural Development, and both federal and state governments.
The newly launched 300-hectare SAPZ site in Ijaiye, Oyo State, will focus on cassava, maize, poultry, soybeans, and horticulture. Oyo State is also developing a larger 2,800-hectare agribusiness hub in Eruwa with an Agricultural Transformation Centre, supported by an additional $37 million from AfDB.
Highlighting the strategic importance of Oyo State, Oyelaran-Oyeyinka pointed out its proximity to Lagos, fertile arable land, and robust infrastructure including access to the Obafemi Awolowo Railway Station and Ibadan’s international cargo airport. “With over 90% of its 28,454 square kilometers being arable and a population nearing 8 million, Oyo is agriculturally blessed,” he noted.
Emphasising the long-term vision of the SAPZ programme, Oyelaran-Oyeyinka stated that the initiative is anchored on eliminating poverty, achieving full employment, and driving rapid industrialisation through rural transformation. He urged the Nigerian government to designate SAPZs as Presidential Priority Projects and grant them export-free zone status to enhance investor confidence and export-driven growth.
Oyelaran-Oyeyinka also warned against repeating the mistakes of past Special Economic Zones in Nigeria, many of which failed due to lack of private sector involvement. “None that belong to the government work. That’s why our mantra is: Government-catalyzed, Private Sector Driven,” he emphasized.
The SAPZ model, he explained, is a peri-urban locational strategy that can trigger structural economic transformation by lifting millions out of poverty and accelerating Nigeria’s GDP growth. Drawing comparisons with global counterparts, he cited that China has nearly 3,000 industrial parks, Vietnam over 700, and South Korea more than 900.
The Oyo groundbreaking ceremony was attended by AfDB President Dr. Akinwumi Adesina, Oyo State Governor Seyi Makinde, development partners, senior government officials, and key players in the private sector. A statement from the AfDB confirmed the Bank’s commitment to balanced regional development and described the SAPZ initiative as a flagship programme under its “Feed Africa” strategy.
With Nigeria aiming to become a $1 trillion economy by 2030, the SAPZ initiative is positioned as a practical solution to drive the high-level growth necessary to meet this target.