…The programme is co-funded by the African Development Bank, the Islamic Development Bank, and the International Fund for Agricultural Development, alongside federal and state contributions
SUN AUG 03 2025-theGBJournal|The Oyo State Government on Saturday performed the groundbreaking ceremony of the State’s Special Agro-Industrial Processing Zone (SAPZ) in Ijaiye.
The SAPZ Programme is a flagship of the African Development Bank’s (AfDB) Feed Africa strategy and aims to transform Nigeria’s rural economy by facilitating agro-industrialisation, expanding market access, and attracting private sector investment.
The ceremony marks the third groundbreaking under Phase I of the Nigeria SAPZ Programme, and the first in the country’s southwest, following successful launches in Kaduna and Cross River States, in April 2025.
It underscores the Bank’s commitment to fostering regionally balanced agro-industrial development across Nigeria.
Oyo State Governor Makinde hailed the launch as a fulfilment of promises made: ”Today is about promises kept. It is a strategic step on the journey of sustainable development. 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.”
Representing Vice President Kashim Shettima, Nigeria’s Minister of Agriculture, Senator Abubakar Kyari highlighted the SAPZ initiative’s alignment with national priorities: “Today’s event exemplifies the spirit of partnership and shared vision that is vital to our nation’s progress. The SAPZ initiative is one of the cornerstones of the renewed hope agenda championed by President Bola Ahmed Tinubu, a vision rooted in restoring Nigeria’s dignity, unlocking our vast potentials and creating opportunities for every citizen.”
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. So, what we’re doing here is to be able to unlock that value,” Adesina stressed.
”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.”
Nigeria’s SAPZ Phase I spans seven states in addition to the Federal Capital Territory (FCT): Kaduna, Cross River, Oyo, Ogun, Kwara, Kano, and Imo, with a total financing envelope of $538 million.
The programme is co-funded by the African Development Bank, the Islamic Development Bank, and the International Fund for Agricultural Development, alongside federal and state contributions.
Oyo State, with a population approaching 8 million and the largest landmass in the southern part of the country, is one of Nigeria’s most agriculturally endowed states. Over 90% of its 28,454 square kilometers is arable, positioning it as a key contributor to Nigeria’s agricultural output. Its proximity to Lagos – the most populous city and largest subnational economy in Africa – makes it a natural hub for agro-industrial investment, trade, and market access.
The 300-hectare SAPZ site in Ijaiye lies just 29 kilometres from Ibadan, the Oyo State capital, and is connected to key infrastructure, including the Chief Obafemi Awolowo Railway Station (16 km) and a newly upgraded road network that links to the Samuel Ladoke Akintola Airport – which is being modernized into an international cargo facility.
The hub which sits on a total of about 3,000 hectares will also contain the Rungis-style wholesale agrifood market as well as crop and livestock production and processing among other facilities.
These assets position Oyo State as a natural hub for domestic and export-oriented agro-processing.
The SAPZ will capitalize on Oyo’s comparative advantage in cassava, maize, poultry, soybeans, and horticulture.
In addition to the Ijaiye hub, the state is also developing a 2,800-hectare agribusiness hub with an Agricultural Transformation Centre (ATC) in Eruwa, designed to serve smallholder farmers and youth agripreneurs through shared infrastructure and service platforms.
Both facilities are supported by a $37 million financing package from the African Development Bank.
As the African Development Bank and the Government of Nigeria advance the program, the Oyo SAPZ launch signals the continued scale-up of integrated, inclusive agro-industrial growth across the country.
Under phase 2 of the SAPZ program, another 24 states will come on board. Phase 2 generated $2.2 billion in global investment interest at the Africa Investment Forum held in December 2024.
The chairperson of the Ijaiye Farm Settlers Association, David Olatunji, described Saturday’s groundbreaking ceremony as “a memorable opportunity” for the community and the state. “We have a lot of unbroken forests around us, and the farmers are ready to work!” he declared.
Dr. Adebowale Adeyeye, an agripreneur specializing in soyabean and cashew production and processing, 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.”
Vice President (represented by the Honourable Minister of Agriculture and Food Security, Senator Abubakar Kyari), the President of the African Development Bank Group, Dr Akinwumi Adesina and other dignitaries graced the groundbreaking ceremony.
Adesina was accompanied by senior Bank officials, including the Director General for Nigeria, Dr. Abdul Kamara; Senior Special Adviser on Industrialization, Prof. Oyebanji Oyelaran-Oyeyinka; and Director of Agricultural Finance and Rural Development Department, Richard Ofori-Mante.
Adesina outlined three critical pillars for the success of the SAPZs: political will, resource mobilization, and strategic partnerships. “What we are witnessing today would not have happened without intense collaboration,” he noted.
Reflecting on his 10-year tenure as President of the African Development Bank, Adesina highlighted milestones achieved under his leadership, including the Bank’s capital increase from $93 billion in 2015 to $318 billion in 2024, and the two-time ranking of its sovereign portfolio as the most transparent among multilateral development banks globally.
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.
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