AfDB Announces $1 Billion Financing for Second Phase of Agro-Industrial Program in Nigeria

The African Development Bank (AfDB) has unveiled plans to provide $1 billion in financing for the second phase of its Special Agro-Industrial Processing Zones (SAPZ) program, which will cover the remaining 28 states in Nigeria.

Dr. Akinwumi Adesina, President of AfDB, made this announcement during the inauguration of a soybean plant and refinery by Called Servant to Service (CSS) Global Integrated Farms in Gora, Karu Local Government Area, Nasarawa State, on Saturday.

The ultra-modern refinery, with a production capacity of 10,000 liters of soybean oil per day, was hailed by Adesina as a major milestone in Nigeria’s agricultural sector. He emphasized that the refinery would significantly reduce the country’s reliance on crude soybean oil imports, which amounted to $62.2 million in 2023.

Adesina highlighted the success of the SAPZ initiative, which is already being implemented in seven states: Cross River, Imo, Oyo, Ogun, Kaduna, Kano, and Kwara, along with the Federal Capital Territory (FCT). The first phase is backed by $538 million in funding from AfDB and its partners.

The second phase will expand the program to the remaining states, supported by $1 billion in financing from AfDB, the Arab Bank for African Economic Development, and the private sector. Nasarawa State, included in this phase, is expected to benefit significantly, with CSS Farms serving as a key anchor investor.

At the Africa Investment Forum (AIF) held in Rabat, Morocco, from December 4 to 6, 2024, the AfDB and its partners mobilized $2.2 billion in investment interest for SAPZ development in Nigeria.

Adesina commended CSS Farms for its contributions to food production, agribusiness promotion, and its focus on empowering Nigerian youths. He also praised the farm for achieving the prestigious ISO 9001 certification.

The SAPZ program, which aims to boost agricultural productivity and drive economic growth, is expected to create employment opportunities and reduce Nigeria’s dependence on food imports.