Shettima Commissions Work on $500 Million Special Agro-Industrial Processing Zone

Vice President Kashim Shettima has launched the construction of a Special Agro-Industrial Processing Zone (SAPZ) in Nigeria, a key step towards repositioning the country’s agricultural sector and expanding its industrial base. The programme will cost over $500 million.

The project, aimed at making Nigeria a leading agro-industrial hub, was launched with promises of enhancing food security, creating jobs, and stimulating economic growth.

Special Agro-Industrial Processing Zone is a critical part of the food self-sufficiency policy of the Nigerian in a bid to reduce reliance on food imports.

The program has the objective of stimulating agricultural value chain development via industrial processing integration into agriculture to enable the nation add value to its raw agro-produces. SAPZ will focus on processing such crops as cassava, rice, maize, and palm oil, among numerous others, to final products to be used at home and/or be exported.

The most notable benefit of the SAPZ program is its job creation potential. The program will generate more than 50,000 direct and indirect employment opportunities within a span of five years, of which 40% will be for women.

This will reduce unemployment and improve rural livelihoods in regions where agriculture is the principal economic activity.

Shettima emphasized the importance of developing sustainable employment and empowering local communities by transforming the agro-industrial value chain.

The Nigerian government, in collaboration with international financial institutions such as the African Development Bank (AfDB), the Islamic Development Bank (IsDB), and the International Fund for Agricultural Development (IFAD), has raised over $500 million to fund the development and construction of the SAPZ.

This money is set to unlock the potential for a huge agricultural revolution, attracting both local and foreign investment.

During his address, Vice President Shettima praised the government for efforts to obtain these funds and highlighted the importance of partnerships with international institutions.

“This project is not merely about expanding Nigeria’s agriculture; it’s about making Nigeria the focal point of the agro-industrial sector in Africa. We must take advantage of this opportunity to drive our agricultural value chains,” he stated.

The pilot implementation of the SAPZ will be in seven states—Kano, Kaduna, Kwara, Ogun, Oyo, Imo, and Cross River—and the Federal Capital Territory (FCT). With an investment of over $520 million combined, this phase is to be completed by 2028.

These areas will arise along with world-class infrastructure, including processing units, warehouses, and transport connectivity, so that it becomes convenient for farmers to access the market and products to be supplied in a cost-effective manner to all corners of the country.

The Nigerian government has already begun preparations for phase two of the SAPZ programme, with the expansion of the programme to 26 additional states.

The planning for this phase is to begin early 2024, with AfDB and other global stakeholders financing.

The expanded implementation is to allow the SAPZ to reach all regions of Nigeria, in support of national economic growth and agricultural diversification.

Vice President Shettima indicated that SAPZ is not only about farming but a platform for national economic growth. With agro-industrial processing, Nigeria will boast a more diversified economy, and domestic processing of food will rise, and dependency on imported food will decrease. It is projected that such a change will contribute to lowering the rising value of imported food items and enhance food security for the growing population of the nation.

The Vice President also stressed the importance of collaboration between the government, the private sector, and international partners in the success of the SAPZ initiative. “This project is the best we can do when we work together. The success of this initiative will be dependent on the involvement of all stakeholders in creating a sustainable, profitable, and self-sustaining agricultural sector,” Shettima further stated.

The establishment of the Special Agro-Industrial Processing Zone is a great step for Nigeria’s agricultural and industrial development. It is a demonstration of the government’s determination towards sustainable economic growth and food security. With massive investments, employment, and global collaborations, the SAPZ program is poised to usher in long-lasting change in Nigeria’s agricultural development and make the country a prominent leader in agro-industrial processing.

As the project progresses, it will continue to have a significant impact on Nigeria’s economy, stimulating industrialization, poverty alleviation, and placing the country in a position to meet the demands of its growing population.