Nigeria Launches Special Agro-Industrial Processing Zone in Oyo State

Nigeria has officially launched a new Special Agro-Industrial Processing Zone (SAPZ) in Oyo State, marking a pivotal development in the country’s ongoing drive to transform its agricultural sector, stimulate job creation, and promote rural industrialization. The groundbreaking ceremony, held on August 2, 2025, in the Ijaiye community near Ibadan, brought together prominent national and international leaders, underscoring the project’s strategic importance to Nigeria’s economic future.

Among the key figures at the ceremony were Dr. Akinwumi Adesina, President of the African Development Bank Group (AfDB), who was on his final official visit to Nigeria in that capacity; Oyo State Governor Seyi Makinde; and Nigeria’s Minister of Agriculture and Food Security, Senator Abubakar Kyari. Their presence highlights the high-level commitment to leveraging agriculture as a driver for economic transformation.

Third SAPZ in Nigeria, First in Southwest Region

The Oyo SAPZ is the third site developed under Nigeria’s national SAPZ program and the first to be established in the southwestern region. It follows earlier launches in Kaduna and Cross River States in April 2025, part of a broader initiative to create agro-industrial hubs across the country. These zones are designed to integrate agricultural production with industrial processing, infrastructure development, and market access, fostering sustainable rural economies.

Spanning 3,000 hectares with 300 hectares targeted for immediate development, the Oyo SAPZ aims to host up to 40 agro-processing industries. It is projected to generate over 100,000 direct and indirect jobs, significantly impacting livelihoods across the region. The zone is also expected to benefit approximately half a million farmers by creating a value-added agricultural ecosystem.

A Vision for Nigeria as a Global Agricultural Powerhouse

In his keynote speech, Dr. Akinwumi Adesina emphasized the transformative potential of SAPZs: “Nigeria can and must be a global powerhouse in agriculture. But to achieve this, investments are crucial. Industrial platforms that link primary agricultural production to storage, processing, value addition, and export are vital. The SAPZs are exactly about creating these platforms.”

He elaborated on the broader development goals: “Exporting raw commodities keeps countries poor, but exporting processed and value-added products creates wealth. Our mission here is to reduce post-harvest losses, develop efficient logistics, and strengthen connections from farm to market and export.”

Adesina identified three pillars critical to the success of the SAPZs: political will, resource mobilization, and strategic partnerships. He applauded the collaborative effort among governments and development partners that made the project possible.

Strategic Financing and Partnerships

The SAPZ initiative is financed through a $538 million first-phase investment committed by the African Development Bank, the Islamic Development Bank, the International Fund for Agricultural Development (IFAD), and Nigeria’s federal and state governments. Together, these partners are working to develop agro-industrial zones across seven Nigerian states and the Federal Capital Territory.

The program is a flagship component of the African Development Bank’s ‘Feed Africa’ strategy, launched in 2015 under Adesina’s leadership. It focuses on creating value chains that uplift rural economies, generate employment, and foster inclusive growth. The Nigerian SAPZ program is the largest among 28 sites being developed across 11 African countries.

Voices from the Community and Agribusiness

Local stakeholders expressed optimism about the project’s impact. David Olatunji, chairperson of the Ijaiye Farm Settlers Association, called the groundbreaking “a memorable opportunity,” highlighting the region’s agricultural potential: “We have unbroken forests around us, and farmers are ready to work.”

Agripreneur Dr. Adebowale Adeyeye, who specializes in soyabean and cashew production and processing, underscored the importance of supportive infrastructure and government backing: “With better power supply, road access, and security, businesses like ours can scale operations, reduce costs, and attract long-term investment. The SAPZ will strengthen agribusiness value chains and boost competitiveness.”

Government Officials Affirm Commitment

Governor Seyi Makinde hailed the SAPZ launch as a “promise kept” and a key step toward sustainable development. “These hubs bring producers closer to processors and link farms to markets,” he said. “Agriculture is not just about food; it’s about infrastructure, enterprise, and national relevance. We are building a future where agriculture feeds industries and sustains entire economies.”

Minister Abubakar Kyari, representing Vice President Kashim Shettima, aligned the SAPZ initiative with Nigeria’s broader national priorities. “This program exemplifies partnership and shared vision, cornerstones of the Renewed Hope Agenda championed by President Bola Ahmed Tinubu. It is about restoring Nigeria’s dignity, unlocking potentials, and creating opportunities for all citizens.”

Looking Ahead: Expansion and Future Plans

Dr. Kabir Yusuf, National Coordinator of SAPZ Nigeria, announced plans to expand the program to 10 additional states starting September 2025, initiating a second phase that will cover remaining parts of the country. This scale-up aims to replicate the success of initial SAPZ sites, further integrating Nigeria’s agricultural sector into global value chains.

Dr. Adesina was accompanied at the event by senior AfDB officials, including Dr. Abdul Kamara, Director General for Nigeria; Prof. Oyebanji Oyelaran-Oyeyinka, Senior Special Adviser on Industrialization; and Richard Ofori-Mante, Director of Agricultural Finance and Rural Development.

A Decade of Transformation and Future Vision

Reflecting on his 10-year tenure as AfDB President, Dr. Adesina highlighted major achievements such as the Bank’s capital increase from $93 billion in 2015 to $318 billion in 2024, and recognition for transparent sovereign portfolio management. The SAPZ initiative embodies the Bank’s vision for Africa’s agricultural future—unlocking value chains, reducing poverty, creating jobs, and fostering resilient rural economies.

The launch of the Oyo SAPZ marks a significant milestone in Nigeria’s path toward agricultural modernization and economic diversification, promising to reshape the rural landscape and empower millions through industrial-scale agribusiness.