By Stanley Onyeka, Lagos
Nigeria has launched a new Special Agro-Industrial Processing Zone (SAPZ) in Oyo State, marking a major milestone in the country’s efforts to boost agricultural transformation, job creation and rural industrialization.
The Oyo site is the third to be developed under the national SAPZ program, and the first in southwest Nigeria. It follows earlier launches in Kaduna and Cross River States in April 2025.
The groundbreaking ceremony, held in the Ijaiye community near Ibadan on Saturday, was attended by national and international dignitaries, including the President of the African Development Bank (AfDB) Group, Dr. Akinwumi Adesina, who was making his final official visit to Nigeria in that role.
Also in attendance were the Governor of Oyo State, Seyi Makinde, and Nigeria’s Minister of Agriculture, Abubakar Kyari, the Bank said in a statement.
Mr. Adesina was quoted as saying: “I believe that Nigeria can and must be a global powerhouse in agriculture. But you need investments to be able to do that.
“You also need industrial platforms that will connect primary agricultural production all the way to how you store products, how you process and add value, and how you ship to be able to sell. And that is what the special agro-industrial processing zones are really about.”
According to the statement, the program is financed by the AfDB in partnership with the Islamic Development Bank, the International Fund for Agricultural Development (IFAD), and Nigeria’s federal and state governments, with combined commitment of $538 million to the first phase of the program, covering seven states and the Federal Capital Territory (FCT), Abuja.
Covering 3,000 hectares, with 300 hectares designated for immediate development, the Oyo SAPZ is expected to host up to 40 agro-processing industries, create over 100,000 direct and indirect jobs, and benefit half a million farmers.
Oyo State Governor Makinde, who described the launch as a fulfilment of promises made, said: “These hubs bring producers closer to processors and link farms to markets.
“They reflect our government’s belief that agriculture is not just about food, it is about infrastructure, enterprise and national relevance.
“We’re building a future where agriculture feeds not just homes, but industries; where it doesn’t just sustain families but entire economies.”
The export of primary commodities is the door to poverty. The export of value-added commodities and products is a highway to wealth.
Unlocking value chains
Representing Vice President Kashim Shettima, Nigeria’s Minister of Agriculture, Abubakar Kyari, said the SAPZ initiative aligned with national priorities.
He said: “Today’s event exemplifies the spirit of partnership and shared vision that is vital to our nation’s progress.”
Dr. Adesina underscored the transformative vision behind SAPZs, calling them essential to unlocking agricultural value chains and lifting millions out of poverty.
“The export of primary commodities is the door to poverty. The export of value-added commodities and products is a highway to wealth. It doesn’t really matter what you have in terms of agricultural commodities, whether it is cocoa or coffee, or grains; if you’re not adding value to it, it’s actually going to make you poor. “Our goal is very clear. It’s to reduce massive post-harvest losses, develop logistics, and improve linkages between farm production, agro-processing, and value addition, transform rural economies, and, of course, to create jobs.”
The SAPZ initiative is a flagship of the Bank’s ‘Feed Africa’ strategy, launched by Adesina in 2015. The zones are being developed in 28 sites across 11 African countries, with the Nigerian program being the largest.
The chairperson of the Ijaiye Farm Settlers Association, David Olatunji, declared: “We have a lot of unbroken forests around us, and the farmers are ready to work!” he declared.
Also, an agripreneur specializing in soyabean and cashew production and processing, Dr. Adebowale Adeyeye, said: “The SAPZ project in Ijaiye is a strategic boost for businesses like ours.
“With targeted government support in areas like power, road access, and security, it creates the kind of enabling environment we need to scale operations, reduce costs, and attract long-term investment. It’s a move that will strengthen agribusiness value chains and enhance overall competitiveness.”
The SAPZ Programme is working to transform Nigeria’s rural economy into zones of prosperity, by facilitating industrial processing, expanding market access, and attracting private sector investment.
The Zones are being developed in 28 sites across 11 African countries, with the Nigeria program being the largest.
Dr. Kabir Yusuf, National Coordinator of SAPZ Nigeria, announced plans to expand the program to an additional 10 states from September 2025, marking the beginning of the second phase that will cover the remaining States in the country.
