Business News of Tuesday, 5 August 2025

Source: www.thenationonlineng.net

Nigeria leads AfDB’s agro-industrial drive across Africa

African Development Bank African Development Bank

Nigeria has emerged as the leading beneficiary of the African Development Bank’s (AfDB) flagship Special Agro-Industrial Processing Zones (SAPZ) programme, which has expanded to 11 African countries, with 27 sites completed or under development.

Speaking at the groundbreaking ceremony of the Ijaiye SAPZ hub in Oyo State, Professor Banji Oyelaran Oyeyinka, Senior Special Adviser to former AfDB President, Akinwumi Adesina, described the expansion as the fulfillment of a vision initiated by Adesina in 2010 during his tenure as Nigeria’s Minister of Agriculture.

He said the initiative is part of a broader strategy to drive agro-industrial transformation across the continent through inclusive growth and rural development.

“In Nigeria, we have completed eight sites under SAPZ Phase One, with 28 more in the pipeline. But the programme is now continental, with 27 sites across 11 African countries. The journey continues.”

Prof Oyelaran Oyeyinka explained that Nigeria is set to implement SAPZs in seven states including Kaduna, Cross River, Oyo, Ogun, Kwara, Kano, and Imo, as well as in the Federal Capital Territory.

He added that the expansion aims to cover 23 additional states by 2027, backed by 538 million dollars in financing.

Describing the SAPZ model as a strategic platform for transforming agriculture from subsistence to enterprise, he noted that the initiative clusters essential infrastructure such as roads, energy, and logistics around rural production centers to attract investment, stimulate agro-industrialisation, and generate large-scale employment.

“This programme is not just about agriculture. It is about lifting Africa out of poverty, creating employment, and promoting export-led growth. Too many of our people are stuck in low-income, subsistence farming. SAPZs will transform that.”

Prof Oyelaran Oyeyinka noted that the 300-hectare Oyo SAPZ would prioritise cassava, maize, poultry, soybeans, and horticulture.

He said it complements a 2,800-hectare agribusiness hub in Eruwa, supported by an additional 37 million dollars in AfDB investment.

He described Oyo State’s selection as strategic, citing its vast arable land, proximity to Lagos which is the largest market in West Africa, and strong transport infrastructure including the Obafemi Awolowo Railway Station and Ibadan Airport.

Calling for stronger governmental support, he urged African governments, particularly Nigeria’s, to create enabling policies for SAPZs.

He recommended granting Presidential Priority Project status and designating SAPZ locations as export free zones to encourage private sector participation.

“We must remember, government catalysed and private sector driven. That is the only way to build sustainable industrial zones in Africa. We cannot afford to repeat the past failures of government run special economic zones,” he cautioned.

Linking the SAPZ programme to Nigeria’s economic aspiration of becoming a one trillion dollar economy by 2030, he emphasised that achieving this would require accelerated structural reforms and substantial growth in GDP per capita.

“At the current growth rate of 3.13 percent, it will take 23 years to get there. But if we want to achieve that in 10 years, we must hit 14.7 percent GDP per capita growth. SAPZs are one of the practical pathways to make that leap,”

Drawing lessons from Asia, Prof Oyelaran Oyeyinka pointed out that China has nearly 3,000 industrial parks, Vietnam has over 700, and South Korea has more than 900. He called on African nations to scale up their industrialisation efforts accordingly.

“The vision is clear. We must build an Africa where rural prosperity is possible, jobs are plenty, and agriculture becomes a driver of transformation.”